South Korea Emerging from Downturn Faster Than Peers
Research Recap has highlighted the relative strength of South Korea’s economy and its manufacturers during the economic downtown, so we thought it would be helpful to take a deeper look at the country. The Economist Intelligence Unit is now estimating the country’s real GDP growth in 2009 at 0.6%, compared with an expected contraction of 1% previously estimated. By special arrangement with the EIU we are pleased to offer complimentary access to the EIU’s latest Country Report South Korea.
Highlights:
- The green shoots of South Korea!s economic recovery, which began to emerge in the second quarter of 2009, have continued to remain in evidence, with real
GDP maintaining its growth rate in the third quarter of the year, domestic factories running at higher capacity and the country!s merchandise export
sector continuing to stabilise. - There is a growing consensus among economists that South Korea is coming out of the global economic downturn faster than
many of its industrial peers. - Nonetheless, the Ministry of Strategy and Finance (MOSF) is sticking to its cautious stance on an exit strategy regarding the emergency policy measures that were initiated as the domestic economy began to deteriorate in the second half of 2008.
The green shoots of South Korea!s economic recovery, which began to emerge in the second quarter of 2009, have continued to remain in evidence, including domestic factories running at higher capacity.
- The financial-sector regulator, the Financial Supervisory Service, is using pre-emptive measures to try to prevent companies from going bankrupt and
asset price bubbles from emerging. - In year-on-year terms, real GDP edged up by 0.6% in the third quarter of 2009 after three consecutive quarters of contraction.
- The weakness of the won in international foreign-exchange markets has been a boon for the local economy, which is dependent on merchandise exports.
The EIU’s 25-page Country Report South Korea has been made available free of charge to ResearchRecap users for 30 days by special arrangement with the Economist Intelligence Unit, an Alacra content partner. After 30 days, the report will revert to its regular AlacraStore price of $270.
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