Headline: South Korea Cuts EconomicGrowth Forecast to 2.4%, Inflation Outlook Also Lowered
Keywords: Bank of Korea, Downgrade, Economy
Content:
Seoul – The Bank of Korea (BOK) on Tuesday lowered its forecastfor South Korea’s economic growth this year to 2.4% from 2.5% in May, citing weak domestic demand and heightened global uncertainties. The central bank also revised down its inflation outlook to 2.5% from 2.6%.
The BOK said the revision was based on the 0.2% quarter-on-quarter contraction in GDP in thesecond quarter (preliminary estimate) and the lack of significant improvement in domestic demand indicators, including consumer spending, in the third quarter. The central bank also pointed to increased financial market volatility and geopolitical risks, adding that while domestic demand has begunto recover, the pace of recovery is not as strong as expected.
The BOK’s GDP growth forecast is lower than the expectations of the government and the OECD (both at 2.6%), the Korea Development Institute (KDI), and the International Monetary Fund (IMF) (both at 2.5%). In terms of specific indicators, the BOK predicts that household consumption will grow by 1.4% and investment in equipment will increase by 0.2%, down 0.4 and 3.3 percentage points, respectively, from its May forecast.
On inflation, the BOK lowered itsCPI inflation forecast for this year by 0.1 percentage point to 2.5%. The central bank expects inflation to continue to moderate, with the average monthly CPI increase falling to 2.2% in the second half of the year.
It’s worth noting that the BOK’s economic growthforecast for next year remains unchanged at 2.1%, the same as its May forecast. The CPI inflation forecast for next year also remains at 2.1%.
Analysts believe that the BOK’s downward revision of its economic growth forecast reflects the reality of slowing global economic growth and sluggish domestic recovery in SouthKorea. While the BOK expects the economy to rebound next year, global economic prospects remain uncertain, and the challenges facing the South Korean economy are still severe.
The South Korean government and the BOK will continue to closely monitor the economic situation and take necessary measures to promote stable economic growth.
【来源】https://cn.yna.co.kr/view/ACK20240822002700881?section=economy/index&input=rss
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