South Korea: Upgrades estimates for next year

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South Korea is still expecting strong economic recovery in the next year after the completion of 2021 with a positive momentum, despite the challenges of the pandemic.

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The GDP of Asia’s fourth largest economy is expected to grow by 3.1% in 2022, mainly due to improved private consumption and exports, the finance ministry said.

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The ministry’s previous estimates spoke of 3% growth, with the services sector expected to recover faster and processor exports likely to remain strong thanks to increased global trade.

Growth is expected to slow from the estimated + 4% this year, due to the low benchmark in 2020, when the economy had shrunk by 0.9%, which is the worst performance since the 1997-1998 Asian crisis.

The ministry expects exports to reach an annual record of $ 656 billion in 2022, higher than estimates for $ 643 billion in 2021.

Inflation is estimated to be reduced to 2.2% in 2022, from the estimated 2.4% in 2021, due to a possible slowdown in oil prices, but also prices of fishery and agricultural products.

The current account surplus is expected to shrink to $ 80 billion in 2022 from an estimated $ 91 billion in 2021, as imports are expected to exceed exports.

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Source From: Capital

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