Korea Economic Outlook
November 17, 2020A preliminary estimate showed the economy contracted at a slower pace in annual terms in the third quarter as international trade ameliorated. Exports recovered significantly from the blow dealt by the pandemic in Q2, falling at a much softer rate. Moreover, fixed investment gained steam, growing at a faster pace than in Q2. Turning to Q4, the recovery is seen losing some steam amid surging Covid-19 cases abroad. That said, available indicators for the early part of the quarter are fairly positive: In October, the PMI reading pointed to the first improvement in manufacturing conditions this year, while consumer sentiment grew less pessimistic. Moreover, business confidence increased in November, pointing to sustained improvement in private sector activity. In other news, Joe Biden’s victory in the U.S. election sparked optimism regarding the future of the external sector, amid hopes that global tariffs will ease.
Korea Economic GrowthThe economy is set to contract this year as the pandemic hits both domestic and external demand. Going into 2021, an accommodative monetary policy and an expansionary fiscal stance are set to bolster domestic activity, boding well for the recovery. However, further outbreaks of Covid-19 threatening to delay the rebound in global trade pose cloud the outlook. FocusEconomics panelists see GDP growth at 3.3% in 2021, which is unchanged from the previous month’s forecast. For 2022, GDP is seen expanding 2.9%.
Korea Economy Data
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|Bond Yield||1.68||1.55 %||Dec 31|
|Exchange Rate||1,156||0.21 %||Dec 31|
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Korea Economic News
July 15, 2021
At its meeting on 15 July, the Bank of Korea (BoK) kept the base rate at its record low of 0.50%, in line with market expectations.
July 15, 2021
On 1 July, the government announced a supplementary budget proposal—the sixth since the pandemic started and the second this year—aimed at supporting the recovery and mitigating the adverse impact of the pandemic, largely financed by spare revenues.
July 2, 2021
Consumer prices dropped 0.07% in June over the previous month, swinging from the 0.07% increase logged in May.
July 1, 2021
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 53.9 in June from May's 53.7.
July 1, 2021
Merchandise exports soared 39.7% in annual terms in June, on the heels of May’s 45.6% jump.