APD | South Korea's 2020 economy forecast to expand 2.1 percent

By APD writer Alice

A recent survey of the State-run Korea Development Institute (KDI) showed that South Korea is expected to see an economic growth of 2.1 percent this year.

However, the prediction did not fully reflect the economic impact of the new coronavirus.

Earlier, the Bank of Korea forecast a growth of 2.3 percent and the Ministry of Economy and Finance projected an expansion of 2.4 percent.

South Korea's economy grew 2 percent last year, its slowest growth in a decade. Due to the US-China trade tensions, South Korea's exports fell 10.3 percent on-year in 2019 to $542.4 billion.

The KDI also predicted that South Korea's exports would grow 2.1 percent this year and 3.5 percent next year.

Concerns are growing over South Korea's export performance this year as the outbreak and spread of the novel coronavirus called Covid-19 is expected to slow down China's economic growth in the first quarter.

China is South Korea's leading export market, accounting for over 25 percent of its overseas shipments.

(ASIA PACIFIC DAILY)