Bloomberg on Oct. 26 forecast faster economic recovery for Korea from the pandemic-triggered recession than Group of Seven member nations. (Screen capture from Bloomberg article)
By Kim Young Deok and Yoon Sojung
Korea will show faster economic recovery than Group of Seven (G7) member nations from the COVID-19-induced recession, Bloomberg said on Oct. 26.
In the article headlined "Korea Expected to Have Emerged From Recession in Better Shape Than G-7," the U.S.-based media outlet said, "South Korea's economy looks set to rebound from a pandemic-triggered recession in a stronger position than most developed nations, aided by an exports recovery, stimulus measures and its relatively successful containment of the coronavirus."
Calling Seoul's fiscal push as "the center of its early recession exit," the article said, "The government has carried out four extra budgets this year, the most in decades, including universal cash handouts," adding, "The central bank has also slashed its benchmark rate to a record low, while pumping liquidity into financial markets to help businesses stay afloat."
Bloomberg also cited China's economic recovery mainly led by rising demand for chips and technology as another factor spurring Korea's recovery.
Predicting Korean GDP growth of 1.3% in the third quarter from the second, the article said, "That would confirm the trade-reliant economy has emerged from its first recession since 2003 with relatively limited damage compared with many other parts of the world."
In a forecast of the longer term, Bloomberg said, "A positive GDP report would set the stage for President Moon Jae-in to pivot from rescuing the economy to stimulating growth and even a longer-term goal of expanding tech sector jobs."
"The fourth quarter may see activity pick up further should Korea succeed in keeping the virus under control and a global recovery gathers pace."
DBS Bank economist Ma Tieying was quoted as saying in the article, "We expect a Nike swoosh recovery to continue in 4Q," adding, "A further release of pent-up consumer demand could be expected in 4Q, as the second wave infection has started to taper off. Meanwhile, semiconductor exports will likely pick up further."
kyd1991@korea.kr
