State Think Tank Cuts Growth Forecast Again

  • By Choi Kyu-min

    November 14, 2019 11:24

    The state-run Korea Development Institute has slashed Korea's growth outlook for the second time in some six months.

    The think tank on Wednesday cut its growth forecast for this year to 2 percent, from 2.4 percent announced in May. It cut its forecast for next year to 2.3 percent from 2.5 percent.

    The KDI said, "Korea's growth has slowed due to weak demand at home and abroad, which dealt a blow to exports and investment. That is likely to continue into next year."

    However, other Korean and international institutions paint a much more pessimistic picture. Korea's economy needs to grow by nearly 1 percent in the fourth quarter to achieve the KDI's projection of 2 percent this year, which many other forecasters see as unlikely.

    The KDI said, "With the year coming to end, both the government and corporations are trying to spend all their budgets in the fourth quarter, so the 2 percent projection is quite achievable."

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