SEOUL, June 25 (AJP) - South Korea's economy is projected to recover this year, with growth estimated at 2.7 percent, a think tank said on Thursday.
The positive economic outlook came at a seminar in Seoul hosted by the Korea Economic Research Institute (KERI), affiliated with the Federation of Korean Industries (FKI).
Lee Seung-seok, a senior researcher at the KERI forecast that the country's economy is expected to grow 2.7 percent this year, rebounding from 1.1 percent last year and surpassing the 2.0 percent potential growth rate for the first time in about two years.
Lee said exports and facility investment would drive growth, supported by government efforts to boost consumption, even as growth is expected to slow to 2 percent in the second half from 3.4 percent in the first half.
But he cautioned, "The recovery is not being felt equally across all businesses, with momentum still heavily concentrated in the semiconductor industry and a few other sectors."
He projected private consumption would grow a modest 2.0 percent due to high inflation and household debt despite income gains and government spending.
The positive economic outlook came at a seminar in Seoul hosted by the Korea Economic Research Institute (KERI), affiliated with the Federation of Korean Industries (FKI).
Lee Seung-seok, a senior researcher at the KERI forecast that the country's economy is expected to grow 2.7 percent this year, rebounding from 1.1 percent last year and surpassing the 2.0 percent potential growth rate for the first time in about two years.
Lee said exports and facility investment would drive growth, supported by government efforts to boost consumption, even as growth is expected to slow to 2 percent in the second half from 3.4 percent in the first half.
But he cautioned, "The recovery is not being felt equally across all businesses, with momentum still heavily concentrated in the semiconductor industry and a few other sectors."
He projected private consumption would grow a modest 2.0 percent due to high inflation and household debt despite income gains and government spending.
Other researchers at the Korea Economic Research Institute (KERI) said the economy is increasingly split into a "K-shaped polarization," with semiconductors and exporters thriving while non-semiconductor industries and domestic demand struggle to keep up, pointing to these as key challenges ahead.
"We need to expand the semiconductor-led recovery to new industries to strengthen the buffers of the South Korean economy," KERI head Chung Chul said.
Copyright ⓒ Aju Press All rights reserved.