S. Korea’s potential economic growth to reach high-3 pct this year: BOK Governor

Bank of Korea (BOK) Governor Kim Choong-soo projected that potential growth rate of the South Korean economy would reach the high-three percent range this year. 

“The International Monetary Fund (IMF) hinted at a 0.25 percentage drop in Korea’s economic growth from its baseline forecast of 3.5 percent,” Governor Kim said at a meeting with CEOs (chief executive officers) of large conglomerates Wednesday morning. “However, Korea’s potential growth might not reach four percent this year, but it would top the high-three percent range.” 

“Although Korea may not be outstanding in its economic performance this year, it will have had a good defense against the current weakening economic conditions if the Korean economy grows over three percent this year.” 

Yet, Governor Kim expressed concerns over economic conditions for the next year. 

“Considering several aspects in terms of the real economy, the upward trend in Korea’s economic growth for this year should be continued in the following year. I am concerned about economic conditions for the next year,” Governor Kim added. 

The governor was relatively optimistic about the US economy. 

“The US saw its economy grow 1.9 percent, which is lower than its initial outlook of mid-two percent in the first quarter (Q1) of this year,” said the governor. “Still, the US economy is expected to grow faster afterwards.”