Thursday, December 10, 2009

Bank Of Korea Raised Its Outlook For 2010

. Thursday, December 10, 2009

By stockOzone team

The Bank of Korea raised its outlook for the South Korean economy Thursday, upgrading its view for both this year and 2010, and raising hopes for a speedy recovery.

The central bank said it now expects this year's gross domestic product to clock 0.2% growth, higher than its prior prediction for a 1.6% contraction.

For 2010, the BOK forecast 4.6% growth, up from its prior estimate of 3.6% growth. And in 2011, growth is expected to hit 4.8%, "boosted by global economic recovery and improved consumer and investor sentiment."

The unemployment rate is expected to fall to 3.5% in 2010, a decrease from the 3.7% rate this year, the BOK said.

The unemployment rate is expected to fall further to 3.4% in 2011, it said.

Consumer price inflation is expected to run at roughly 2.8% in 2010, a similar rate to that experienced this year.

Core inflation is tipped at 2.5%, the BOK said, accelerating to 2.9% in 2011, as the economic recovery creates pressure "on the demand side."

Disclosure: Author does not own any of the stocks discussed here.

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