APD | South Korean economy to bounce back to grow 2.3 percent in 2020

By APD Writer Rishika chauhan

The South Korean economy is expected to rebound to grow 2.3 percent year-on-year in 2020, slightly improving from this year's estimated 2 percent growth, said the Korea Institute for Industrial Economics & Trade (KIET).

The institute said that the economic expansion of Asia's No. 4 economy next year may be weaker than expected due to falling exports and weak consumer sentiment, adding the global trade disputes, along with the fiscal policies of major countries, will play decisive roles in the economic growth.

The country's exports are expected to increase 2.5 percent year-on-year in 2020, a sharp turnaround from this year's estimated fall of 9.8 percent, thanks to the improvement of the global chip business environment.

Its trade surplus will be US$38.7 next year, slightly down from this year's projected $41.5 billion.

Earlier, the KIET predicted a 2.4 percent growth for South Korea in 2019 but it revised down the outlook on the protracted trade disputes between the United States and China, which led to reduced investment and consumption here.

(ASIA PACIFIC DAILY)