N. Korea to review U.S. policy if human rights pressure persists: official

Goldman Sachs cuts growth outlook for Korea

kh close

 

Published : 2013-02-08 15:45
Updated : 2013-02-08 15:45

The South Korean economy is likely to expand at a slower pace than expected this year due to the negative impact of the Japanese currency's depreciation on its overseas shipments, Goldman Sachs said Friday.

In its latest forecast, the global investment bank said Asia's fourth-largest economy will likely grow 3.1 percent this year, down from its earlier estimate of 3.4 percent made in December.

Kwon Goo-hoon, the managing director and co-head of research at Goldman Sachs Asia, attributed the lower growth forecast to negative impact from the rapid depreciation of the Japanese yen, which has weighed down local exporters.

"Given the current level of yen weakness, we adjusted the growth estimate for Korea," he told reporters in Seoul.

Goldman Sachs projected the streak of a strong Korean won will likely continue through this year, further appreciating against the U.S. dollar to 1,030 won toward the end of the year from the current level of around 1,060 won, although it may briefly fall in the first quarter.

The local currency will likely stay strong against the yen this year, at an average of 1,060 won, compared with 1,127 won in 2012, the investment bank said.

(Yonhap News)

Photo News

티아라 효민 멋진 뒤태에 남심 흔들

섹시백 선발대회 몸매 뽐내는 참가자들

카자흐 女배구선수 초특급 미모, 전세계 ‘깜짝’