Korea Economic Outlook
February 20, 2018Economic growth slowed in the fourth quarter of last year, after reaching a nearly four-year high in the third quarter. According to preliminary data released by the Bank of Korea, year-on-year growth decelerated to 3.0% in the fourth quarter, down from 3.8% in the third. Overall, the economy expanded 3.1% in 2017, higher than 2.8% in 2016. In Q4, fewer exports and weaker fixed investment slowed growth, even though private and government consumption dynamics were positive. Indications from January bode well for Q1: Exports grew thanks to strong shipments of semiconductors; improved operating conditions were signaled in the manufacturing sector as businesses reported stronger domestic and overseas demand; and consumer confidence was high in the month. Meanwhile, the ongoing PyeongChang Winter Olympics have led to an apparent warming in relations between North and South Korea, although it remains to be seen if this will translate into reduced geopolitical tension on the peninsula.
Korea Economic GrowthThe economy is expected to be supported by increased government spending, a healthy global economy and a boost from the PyeongChang Winter Olympics this year. However, recent government measures to tame housing prices and household debt could weigh on the short-term growth outlook. FocusEconomics panelists forecast economic growth of 2.9% in 2018, which is down 0.1 percentage point from last month’s forecast. In 2019, they foresee an expansion of 2.8%.
Korea Economy Data
5 years of Korea economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.70||1.55 %||Mar 15|
|Exchange Rate||1,066||0.21 %||Mar 15|
|Stock Market||2,492||-0.40 %||Mar 15|
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Korea Economic News
March 6, 2018
Consumer prices increased 0.8% in February from the previous month, according to the National Statistics Office of Korea.
March 2, 2018
Industrial production in the mining, manufacturing, gas and electricity sectors increased 4.6% in January compared to the same month last year, contrasting December’s revised 4.6% decrease (previously reported: -6.0% year-on-year).
March 2, 2018
The manufacturing sector signaled a second consecutive month of expansion in February, albeit less than in January.
March 2, 2018
In February, merchandise exports increased 4.0% compared to the same month last year—substantially less than January’s 22.2% growth—and totaled USD 44.9 billion.
February 28, 2018
The Bank of Korea’s forward-looking business confidence indicator (BSI) for the manufacturing sector rose from a one-year low of 77 points for February to 82 points for March.