A local research firm on Thursday revised its outlook on South Korea's economic growth for this year to 2.7 percent from 2.2 percent as it sees exports to remain robust throughout the year. Hyundai Research Institute (HRI) has made the upward revision as the country's economic growth will be driven by robust exports, rebounding from last year's "combined depression" composed of sluggish shipments, high consumer prices and high interest rates. Increased global transactions will help the country report 9.3 percent on-year growth this year, reversing from a 7.5-percent decline last year, the HRI said. This photo taken June 5, 2024, shows people walking on the street of Myeongdong, central Seoul. (Yonhap) Helped by strong exports, South Korea is expected to post a trade surplus of US$43.4 billion this year, shifting from a deficit of $10.3 billion last year. The country's current account surplus is also forecast to expand to $61 billion from $35.5 billion during the same period. On the domestic front, howeve r, high inflation and high interest rates will continue to weigh on domestic demand this year. The research center called on the government to take necessary measures to prop up consumption and investments in line with robust exports for an economic growth. The HRI's growth outlook is higher than the forecasts released by the Korean government, its central bank and global organizations. The Organization for Economic Cooperation and Development revised up its outlook for South Korea's economic growth this year to 2.6 percent from its earlier projection in February of 2.2 percent. The forecast was rosier than the growth outlook for South Korea of 2.3 percent by the International Monetary Fund. The Korean government projected 2.2 percent growth and the Bank of Korea presented a 2.1 percent forecast. Source: Yonhap News Agency
