Economist: Korea to Post 5.3% Economic Growth in 2008

"Although global economic growth in 2008 will slow down, the world will post a 4.6% growth, with Asian emerging economies booming. The Korean economy will grow by 5.3%, and its GDP will surpass one trillion dollars. Korea’s new administration will prioritize economic growth and U.S.-friendly diplomatic policies." This is a part of ‘The World in 2008,’ released by the UK economic weekly, the Economist, on November 15. It is an annual report on global issues and economic prospects written by experts from all over the world. The following is a summary of the report.

The world economy will withstand difficulties-

The Economist predicted that the U.S. economy in 2008 will face high possibilities of a recession due to the downturn in the housing market. However, economic growth in China and India, which will be 10.1% and 7.9%, respectively, will push the global market to post 4.6% growth, slightly lower than this year’s 5.1%.

It reported that Korea’s GDP will be around 1.2 trillion dollars, with its per capita GDP approaching 20,820 dollars, due to 5.3% economic growth and the weak dollar. Some African countries such as Angola will be able to post a 20% or higher growth thanks to oil revenues.

The U.K. weekly also projected that global energy demand will increase by about 3.5%, but oil prices will stabilize at 69 dollars per barrel (Brent oil), and that the surge in oil prices is likely to come to a halt around 2009 after the production is augmented. In the meantime, demand in raw materials such as steel is forecasted to be met with adequate supply.

Asian growth to be full-fledged-

The Economist analyzed that Korean and Japanese automakers will lead in the North American and European market, and that the low-price automobile market will be encroached by Indian and Chinese cars.

China will emerge as a leader in e-commerce with the number of broadband Internet users exceeding that of the U.S. With approximately 1.5 billion Internet users, on-line shopping will rise by 17% over the next five years.

It projected that Asia will possibly surpass the U.S. in the entertainment industry as well, and India will make about 800 movies, more than the 600 of the U.S. The media industry will enjoy its peak with the Beijing Olympics.

In the medical sector, the magazine foresaw that cancers, diabetes, respiratory and heart diseases will be common in advanced countries. Moreover, investment in the fitness industry is forecasted to post a record high, up to 10.6% of global GDP.

Hillary and Lee Myung-bak to be next presidents-

In the political and social sector, it is noteworthy that the Economist predicted that Hillary Clinton and Lee Myung-bak to win in the upcoming presidential elections.

The magazine reported that Hilary Clinton will be the first female president in the U.S. because Americans, sick of Republican incompetence, will cast their votes for the Democrats.

It reported that Korea will start the year 2008 with the inauguration of Lee Myung-bak and that he will focus on economic growth, putting an end to the current administration’s distribution-first policy.

Russia will undergo political instability since possibility of President Putin maintaining power by any means necessary has materialized.

Most American forces are forecasted to withdraw from Iraq or be deployed to the rear, exacerbating social turmoil there. In Iran, the reformists’ rise in the general elections to be held in March will weaken the position of Iran`s President Mahmoud Ahmadinejad.

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