OECD Predicts 5.2% Growth for Korean Economy
The Korean Development Institute (KDI) and the Organization for Economic Cooperation and Development (OECD) raised its optimistic forecast for Korea’s economic growth for this year.
The OECD expected a positive Korean economy for this year in its report entitled “Economic Outlook for 2006,” despite several aggravating factors, such as the soaring Korean currency to the US dollar, saying that growth will be resumed after overcoming the current Korean exchange rate problem. The economic organization also forecast Korea’s economic growth for 2007 to rise to 5.3 percent from the previous 5.2 percent. In addition, the OECD said Korea’s export growth is also picking up despite the significant appreciation of the won during the past 18 months. Last November, the OECD announced the growth rate of the Korean economy would be 5.1% for 2006.
During the regular briefing to the press at the Central Government Complex, Hyun Jung-tack, head of KDI, said, “Despite the current unstable Korean exchange rate and skyrocketing oil prices, it is possible that economic growth for this year can reach to 5%,” adding, “Since economic growth is faster than expected in the first quarter this year, we expect it will be 6% by the last quarter.” The OECD’s revised gross domestic product (GDP) growth forecast for 2006 is higher than the Korean government’s five percent target.
He also stated that some private research institutes have erroneously forecast that the growth rate will be less than 4% this year.
The OECD said, notwithstanding headwinds from high and volatile energy prices, growth for the 30 OECD economies is projected to continue and even broaden this year. Hyun Jung-tack added, “In the second quarter, growth will be slow, not sudden, and it is expected that the economic growth rate of Korea for this year will reach at least 5%.”
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 / 입력시간: 2006. 05.25. 09:04
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