The Korea Herald

피터빈트

Eurozone economy unlikely to improve until next year: BOK head

By KH디지털뉴스부공용

Published : Sept. 26, 2012 - 09:44

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South Korea's top central banker said Wednesday that the eurozone economy is not likely to improve until next year as the global economic outlook remains subdued.

"A set of economic data coming from the eurozone has given mixed signals, repeatedly producing positive and negative news together," Bank of Korea (BOK) Gov. Kim Choong-soo said in a monthly meeting with economists.

"The eurozone economy is not likely to highly improve until next year as the economic outlook for the currency bloc remains dimmer."

His remarks came as the Korean economy is losing steam on faltering exports and sluggish domestic demand, hit by the protracted eurozone debt crisis.

The BOK's 2012 growth outlook for the Korean economy stands at 3 percent, but many analysts said that the full-year growth is likely to reach in the 2-percent range this year.

The BOK froze the key rate at 3 percent for the second straight month in September following a surprise rate cut in July in an apparent bid to reserve policy room to brace for worsening economic conditions at home and abroad. (Yonhap News)