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  S. Korean economy to fare better in Q2: IBs
  Poster : admin     Date : 13-11-28 00:41     Hit : 383    
S. Korean economy to fare better in Q2: IBs
Hits : 21 Date : 2013-05-07
S. Korean economy to fare better in Q2: IBs SEOUL, April 30 (Yonhap) -- The South Korean economy has reached its nadir in the first quarter and will improve from the second quarter of this year on the government's stimulus measures, global investment banks said Tuesday.

According to the Royal Bank of Scotland (RBS), Asia's fourth-largest economy is anticipated to grow 2.6 percent in 2013, up 0.4 percentage point from 2.2 percent estimated earlier.

The RBS said the upgrade came as South Korea boasted a better-than-expected economic growth in the first quarter, implying the weak yen has only a limited impact on the country.

South Korea's gross domestic product (GDP), the broadest measure of economic performance, grew 0.9 percent in the first quarter from three months earlier, marking the fastest quarterly pace in two years.

Market watchers earlier predicted the yen may fall to the psychologically important 100 level per the greenback, inflicting foreign exchange losses to South Korean exporters, thus limiting the country's economic growth.

The yen has been under heavy downward pressure to the dollar on the back of Japan's "Abenomics" -- a mixture of aggressive monetary and fiscal policies preached by its Prime Minister Shinzo Abe.

Barclays Capital and Morgan Stanley echoed the view, adding the South Korean economy will gradually recover down the road from the second quarter this year on the back of the government's efforts to revitalize its economy.

Earlier this month, South Korea unveiled an extra budget proposal worth 17.3 trillion won (US$15.6 billion). Of the total, 12 trillion won has been set aside to meet the expected revenue shortfalls, and the remaining 5.3 trillion won is intended to boost the economy.

Nomura and IHS Global Insight, meanwhile, said the country's economy will improve from the third quarter as it will take some time for the government's stimulus measures to have an actual impact on the market.

Source Text

Source: Yonhap News(Apr. 30, 2013)