S. Korean economy forecast to grow 3.3 pct in 2021
2020/11/25 10:56
economy-growth outlook
SEOUL, Nov. 25 (Yonhap) — The South Korean economy is expected to expand 3.3 percent on-year in 2021 on the back of a recovery in consumption and exports, a local think tank said Wednesday.
The Korea Capital Market Institute (KCMI) also predicted Asia’s fourth-largest economy will shrink 1 percent this year from last year amid the fallout from the coronavirus pandemic.
KCMI said next year’s economic growth will be bolstered by a rebound in domestic demand and overseas shipments.
South Korea’s consumer prices are forecast to increase 1.1 percent in 2021 from this year due to stable international oil prices and weak demand.
The think tank projected South Korea’s stock market to remain bullish in the coming year, driven by the local economy’s recovery, with the benchmark Korea Composite Stock Price Index (KOSPI) likely to reach up to 2,900 at the end of next year.
Powered by strong foreign buying, the local stock market has recently been on a roll. The KOSPI finished at an all-time high of 2,617.76 on Tuesday on hopes of an economic recovery and new coronavirus vaccine development.
KCMI predicted the South Korean currency to change hands at a range of 1,050-1,130 won against the U.S. dollar next year.’
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