Most Experts Say Economy Not to Recover This Year

More than half of 100 Korean economic experts say the Korean economy will not bottom out this year, expecting a recovery slower than the government projection.

The experts said housing prices will fall more than five percent at the end of this year, continuing the deflation of assets that began last year.

The Dong-A Ilbo polled 100 economic experts working in industry, finance, academia and the government between Thursday and Tuesday as part of its series, “Korea 2009: What Must Be Done.”

The respondents included CEOs and executives of companies and financial institutions, professors, representatives of think tanks, and economy ministers and vice ministers.

On when the economy will bottom out and begin recovery, 47 predicted the first half of next year, while 44 said the second half of this year. Combining other answers –- "the second half of next year" (seven) and “after 2011” (two) -- 56 experts said the economy will recover after next year.

Eighty-seven experts cited corporate restructuring in the wake of the economic hardship as the worst factor destabilizing labor-management relations this year.

On the government’s top priority (multiple answers) this year, 65 experts said the creation of jobs is the most important. Fifty-nine said the government must increase the number of jobs or expand financial and infrastructure investment to preserve existing jobs.

On the Lee Myung-bak administration`s first year, 45 of the 100 experts gave a grade of "C," 33 "B" and 13 "D." Two rated the government an "A," one "F" and six did not answer.

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