Due to the effects of high interest rates, inflation, and a weak local currency, experts predicted that South Korea’s GDP growth may be less than 2% in 2019.
The South Korean Yonhap News Agency reported that economists in the private sector said that they see that there are few positive factors that will keep the country’s economic growth at 2% next year.
“The exports are slowing in light of the global slowdown, and it is expected that local consumption will remain faltering due to the high prices and interest rates, and that the companies’ investments will be limited due to the high cost of borrowing. ”
Professor of economics Kim Jong Seick from UNense University predicted that the real estate market would crash because of excessive lending and inflation.
The Korean Economic Research Institute and Hannah Finance Bank predicted that the GDP will expand by 1.8% and 1.9%, respectively, in 2023.
Next year, the economy is predicted to increase by 2.1% and 2.3%, respectively, according to projections from the Korean Central Bank and the Korean Development Institute.
Consumer prices surged at the quickest rate in roughly 24 years, reaching 6.3% in July and 5.7% in October of last year when compared to the same month in the previous year.
According to experts, South Korea’s GDP may only rise by 2% in 2013.
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