S. Korea expects higher than world average economic growth in 2014

Source:Xinhua Published: 2013-12-27 9:28:09

South Korea's Finance Ministry said on Friday that the country's economic growth was expected to exceed the global economy in 2014, the first in four years, due to solid exports caused by the global recovery.

The ministry said in an annual report to disclose its economic policy direction that real gross domestic product was forecast to expand at an annual rate of 3.9 percent next year, higher than the global growth forecast of 3.6 percent estimated by the International Monetary Fund.

It would be the first time in four years that South Korea's economic growth surpasses the world's expansion. The 2014 figure was also higher than 2.8 percent in 2013 and 2 percent in 2012 respectively.

The ministry said that expected improvement in both exports and domestic demand will contribute to the 2014 growth.

Private consumption was forecast to rise 3.3 percent next year as real purchasing power would be enhanced due to continued growth in employment amid stable consumer prices.

Exports, which account for around half of the economy, were predicted to expand 6.4 percent in 2014 after rising 2.5 percent in 2013 amid modest recovery of the world economy.

Downside risks remained such as sluggish growth and capital flow volatility in emerging economies caused by the US Federal Reserve's decision to taper its quantitative easing from January next year as well as uncertainties over the US debt ceiling talks and Japan's economic path, the ministry said.

Posted in: Economy

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