S. Korea to post 2% growth in 2019 on sluggish exports, investment

South Korea’s look to post around 2%
expansion this year it’s lower than previously expected mainly due to slower
trade investment and consumption Kim Azam provides an overview of the local
economy in 2019 South Korea is expected to post growth of 2% this year lower
than the government’s original outlook last year of between 2.6 and 2.7 percent
mainly due to sluggish exports low investment and slower domestic
consumption a slower global economy and uncertainties like the us-china trade
dispute hurt global trade and South Korea which is highly dependent on
exports was negatively affected by the straight downturn on top of sluggish
investment semiconductor exports accounted for about a fifth of South
Korea’s total exports in 2018 but with chip prices plunging this year on
oversupply and low demand chip exports fell sharply shipments to China Korea’s
number one export partner fell amid slower Chinese economic growth total
experts in the last 12 months through November this year came to 545 billion
u.s. dollars down 10 percent on-year both construction investment and
facilities investment dropped by 4 percent and 8 percent respectively which
also negatively affected consumer demand contributing to low inflation for the
first time since records began in 1965 Korea saw consumer prices drop falling
0.4 percent in September triggering fears of deflation to support growth the
Bank of Korea has cut interest rates to a record low of one point to five
percenter and the government carried out an expansionary fiscal policy on top of
his three signature policies of inclusive growth innovative growth and
building a fair economy the government’s inclusive growth policy of job creation
and welfare policies saw positive outcomes this year
the employment rate hit a record high we saw more newly added jobs income
distribution fared better with a lower Gini coefficient a lower income quintile
share ratio and a lower relative poverty rate
still a key task that remains as to improve the quality of jobs and to
create more employment for those in their 40s with a global economy expected
to improve with the US and China agreeing on a Phase one trade deal South
Korea’s exports will likely go up next year to further boost growth the
government has vowed to increase investment and nurture new industries
Imazon arirang news

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