The central bank forecast that South Korea’s gross domestic product (GDP) will grow 3 percent in 2018, faster than its previous estimate of 2.9 percent, BOK Gov. Lee Ju-yeol told reporters. (Image: Yonhap)
SEOUL, Jan. 18 (Korea Bizwire) – The Bank of Korea (BOK) on Thursday raised its economic growth forecast for this year on expectations of continued domestic demand recovery and robust export growth.
The central bank forecast that South Korea’s gross domestic product (GDP) will grow 3 percent in 2018, faster than its previous estimate of 2.9 percent, BOK Gov. Lee Ju-yeol told reporters.
The BOK left its base rate unchanged earlier in the day, saying it “judges that the solid trend of domestic economic growth has continued as exports have sustained their buoyancy and consumption has improved moderately, although investment has slowed somewhat.”
The latest GDP forecast for Asia’s fourth-largest economy is in line with the government’s economic outlook.
Lee said the BOK’s decision to freeze the base rate was unanimous.
The BOK decided to raise the GDP forecast as exports are likely to sustain favorable movements thanks to the buoyancy of the global economy, Lee said.
With regard to the recent price fluctuation of cryptocurrencies, Lee said such developments are unlikely to undermine the nation’s financial soundness.
In July last year, the government decided to raise the minimum wage by 16 percent to 7,530 won (US$6.60) for this year, marking the biggest jump in about two decades.
Lee said it remains to be seen how the wage hike would impact consumer prices and overall economic growth.
(Yonhap)
