KDI Lowers Economic Growth Rate to 4.3 Pct

Korea Times (Seoul, Korea), April 20, 2001 | Go to article overview
Save to active project

KDI Lowers Economic Growth Rate to 4.3 Pct


The Korea Development Institute (KDI) yesterday projected Korea would register a 4.3 percent economic growth rate for the year, down from its earlier forecast of 5.1 percent.

The state-funded institute also said the growth rate might fall even to the 3 percent level should the U.S. economy slow down faster than is generally expected.

The KDI predicted the economy would continue to suffer from a lingering slowdown into the latter half of the year.

Exports, for instance, are expected to remain sluggish, due to the weakening global economy and domestic consumption is also likely to stay below par.

The gross domestic product (GDP), a measure of the goods and services produced over one year inside Korea whether by a domestic company or an international company, is expected to grow by 4.3 percent, less than half of Korea's growth rate of 8.8 percent last year, it said.

As a comparison, the National Bureau of Statistics in Beijing recently announced an 8.1 percent growth rate for the Chinese economy this year.

The KDI advised the Seoul government to take flexible measures in the event that the economy is contracting faster than is thought and to push for much-needed corporate restructuring.

Despite the slowdown in the economic growth rate, the institute projects the real economy felt by general consumers to improve, thanks to stabilizing trade terms.

Korea will post a current account surplus of $13.4 billion, larger than the black ink figure of $11 billion last year, as imports contract faster than exports. Trade surplus is expected to top 18 billion dollars, it said.

The consumer price hike was forecast at 4.2 percent this year, double the figure last year, due mainly to a sharp rise in public utility fares and the currency depreciation against U.S. dollar.

The institute said the unemployment rate would hover at slightly above 4 percent.

But the figure would not pose as a serious problem as the unemployment rate has remained within the 4 percent range for some time, it said.

``In view of inflationary pressure on the back of a currency depreciation, it is desirable to keep the interest rate at the current level,'' the KDI said in its report.

The KDI said the government should get rid of destabilizing factors in the financial market, including the troubled Hyundai group.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

KDI Lowers Economic Growth Rate to 4.3 Pct
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?