Go to contents

``Korean Economy Looking Hopeful and Better Than Competitors``

``Korean Economy Looking Hopeful and Better Than Competitors``

Posted October. 13, 2001 09:04,   


In comparison to Singapore, Taiwan, Hong Kong, and other competitor nations, experts say that Korea will suffer less from the international economic situation and that the current deficit balance is only temporary.

Hong Kong`s English weekly magazine, Fyston Economic Review published a special report (October 18) on the Korean economy and made similar conclusions, the Ministry of Finance and Economy announced on October 12.

The magazine said, ``Although Korea`s growth rate will be around 3 percent, one percent less than the last projection, its GDP over the past several quarters has been better than other nations except for China.``

``In trade, Korea is less vulnerable to outside impact than Taiwan or Singapore and did not experience as much reduction in export as other export-oriented nations. Korean auto and shipbuilding production is supplementing the losses in export resulting from the decline of information technology.`` added the magazine.

The article concluded, ``Although Korean export and import has decreased in recent months and led to a deficit in its August balance for the first time 16 months, the deficit appears to be a temporary phenomenon.``

In addition, the report indicated, ``The Korean government is lowering interest rates and releasing currency in order to alleviate the economic shock but it is questionable whether this will bring about the desired results. In order to really prevent economic stagnation, there has to be a policy directly applied to the financial sector.``

Park Joong-Hyun sanjuck@donga.com