FOREX TradingCharts.com

Financial News: South Korea's GDP Growth Set To Remain Strong

South Korea's GDP Growth Set To Remain Strong On Robust Global Demand

10/30/2017 - 06:54:00 (RTTNews)

(RTTNews) - South Korea's economic growth is likely to remain strong over the coming year on the back of robust global demand, Gareth Leather and Shilan Shah, economists at Capital Economics, said.

GDP growth rebounded to 1.4 percent in the third quarter from 0.6 percent in the second quarter, official data showed on October 26.

Moreover, this was the fastest quarterly growth since the second quarter of 2010.

South Korea's growth reached a 7-year high in the third quarter, as the economy brushed off the rising tensions on the Korean peninsula, economists observed.

"Provided conflict is avoided, South Korea should continue to grow strongly over the coming year, helped by robust global demand, an increase in government spending and a big rise in the minimum wage," they said.

The rebound in the third quarter was largely driven by a jump in export demand, which grew by 6.6 percent compared with a contraction of 2.9 percent in the second quarter.

On an annual basis, the economic growth accelerated to 3.6 percent from 2.7 percent.

"Looking ahead, prospects for next year are good," Capital Economics said.

With inflationary pressures low, monetary policy is likely to remain loose, economists said. They expect the policy rate to remain unchanged at 1.25 percent throughout 2018.

Besides this, fiscal policy is likely to remain supportive and the government plans to boost spending next year by 4.6 percent, Capital Economics said.

Furthermore, export demand is expected to be a key driver in the future. Capital Economics expects the global economy to grow by a healthy 3.4 percent next year, which on past form is consistent with South Korean exports doing well in the coming quarters.

"Overall, we are nudging up our growth forecast for this year to 3.0 percent, from 2.5 percent previously," economists said.

"We are keeping our forecast for next year unchanged at 3.0 percent."

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2017 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Cash Remains Preferred Payment Option In Eurozone: ECB Study (05 min(s), 47 sec(s) ago)
(RTTNews) - Euro zone consumers still prefer cash to other options for paying for their purchases, ...Full Story»

ECB's Coeure Warns Against Fake Data (47 min(s), 47 sec(s) ago)
(RTTNews) - Fake statistics are equally threatening to the euro area economy as fake news is to po ...Full Story»

Eurozone Economy Set To Extend Surprisingly Positive Run In 2018 (36 min(s), 47 sec(s) ago)
(RTTNews) - As the outlook for consumption is improving, the Eurozone economy is on its way to ext ...Full Story»

Swiss Industrial Production Expands In Q3 (56 min(s), 47 sec(s) ago)
(RTTNews) - Switzerland's industrial production and turnover increased notably in the third qu ...Full Story»

UK Mortgage Approvals At 13-Month Low (47 min(s), 47 sec(s) ago)
(RTTNews) - UK mortgage approvals declined to a 13-month low in October, data from UK Finance show ...Full Story»

German Business Confidence At Record High (48 min(s), 47 sec(s) ago)
(RTTNews) - Germany's business confidence strengthened to a new record in November on optimist ...Full Story»

Turkey Capacity Utilization Rises; Business Confidence Weakens (23 min(s), 47 sec(s) ago)
(RTTNews) - Turkey's capacity utilization rate increased for the fourth straight month in Nove ...Full Story»

Poland Jobless Rate Falls More Than Expected In October (04 min(s), 47 sec(s) ago)
(RTTNews) - Poland's unemployment rate decreased more-than-expected in October, figures from t ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Cash Remains Preferred Payment Option In Eurozone: ECB Study

11/24/2017 - 09:31 AM (RTTNews)
(RTTNews) - Euro zone consumers still prefer cash to other options for paying for their purchases, ...Full Story>>

ECB's Coeure Warns Against Fake Data

11/24/2017 - 09:13 AM (RTTNews)
(RTTNews) - Fake statistics are equally threatening to the euro area economy as fake news is to po ...Full Story>>

Eurozone Economy Set To Extend Surprisingly Positive Run In 2018

11/24/2017 - 09:02 AM (RTTNews)
(RTTNews) - As the outlook for consumption is improving, the Eurozone economy is on its way to ext ...Full Story>>

Swiss Industrial Production Expands In Q3

11/24/2017 - 07:22 AM (RTTNews)
(RTTNews) - Switzerland's industrial production and turnover increased notably in the third qu ...Full Story>>

German Business Confidence At Record High

11/24/2017 - 07:14 AM (RTTNews)
(RTTNews) - Germany's business confidence strengthened to a new record in November on optimist ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.