S. Korea cuts its growth outlook to 2.4%-2.5% in 2019: Yonhap

By Lim Chang-won Posted : July 3, 2019, 13:16 Updated : July 3, 2019, 13:16

[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]


SEOUL -- South Korea slashed its economic growth outlook this year to between 2.4 percent and 2.5 percent due to weak exports and sluggish investment.

The government's latest estimate represents a drop from its previous forecast of between 2.6 percent and 2.7 percent in December. The government said the South Korean economy is projected to grow 2.6 percent in 2020.

South Korea blamed slowing exports and sluggish investment, as well as trade friction between the United States and China, for its downward revision. South Korea's exports fell 13.5 percent on-year to US$44.18 billion in June, extending their on-year decline for the seventh consecutive month due mainly to the prolonged trade row between the world's top two economies.

Exports to China -- South Korea's largest trading partner -- slipped 24.1 percent in June from a year earlier, while outbound shipments to the U.S. edged down 2.5 percent due to sluggish demand for chips and mobile devices. Adding to the economy's woes, a recovery in the semiconductor sector is being delayed, according to the Ministry of Economy and Finance.

The price of semiconductors -- one of South Korea's main export items -- has plummeted sharply since late 2018, squeezing the profit margins of Samsung Electronics Co., the world's largest memory chip maker, and its smaller rival SK hynix Inc. South Korea accounted for more than 60 percent of the global memory market in 2018.
(Yonhap)
기사 이미지 확대 보기
닫기