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IBs predict gradual pickup in Korean economy

The Korean economy will gradually regain momentum as the global economic recovers, the Korean Center for International Finance said in a research report released on Monday.

Citing Goldman Sachs, the KCIF stated that the incoming administration’s stimulus plans along with a positive outlook on China’s economic growth will enable the domestic economy to keep building momentum for recovery, despite lowered expectations over the nation’s economic growth.

Goldman Sachs cut Korea’s expected economic growth in 2013 from 3.4 percent to 3.1 percent, JPMorgan from 2.9 percent to 2.8 percent, and Bank of America-Merrill Lynch from 2.8 percent to 2.6 percent.

However, these firms assessed that the domestic economy is taking a turn for the better, encouraged by the nation’s promising fourth-quarter exports and mining and manufacturing industries, the FCIF said.

Citing Morgan Stanley, the financial research center also stressed that this year’s corporate investment will rebound between the first and the second quarter in spite of a continuously sliding corporate economic sentiment index.

Relief in a strong won and economic stimulus plans will make up for the still-weak recovery in exports, it said.

By Chung Joo-won (
Korea Herald Youtube