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The South Korean economy is forecast to make a modest rebound and expand by 3.4
percent on-year in 2013 due to a steady growth in exports, a local private think
tank said Monday.
"Exports will slightly turn around next year to
steer the economy to a modest growth," said LG Economic Research Institute in a
report.
A growth rate of 3.4 percent growth for Asia's fourth-largest
economy represents a rebound from an estimated 2.2 percent growth for 2012 due
mainly to sluggish trade.
Trade surplus, however, is forecast to
decrease from US$42.9 billion for this year to $27.3 billion in 2013, added the
institute.
Domestic consumption will rise 2.7 percent on-year next
year, up from an estimate of 1.7 percent for 2012, and facility investments will
make a rebound to 3 percent in 2013 from a 1.1 percent drop for this year, it
said.
The think tank also predicted consumer prices will move at a
steady pace of 2.7 percent on-year, while the estimated number of new jobs will
fall from 450,000 to 200,000 next year.
The central bank is expected
to lower the key rate in the first half of the year and the local currency will
hover around 1,050 won against the U.S. dollar, said the institute.
"The economy seems to recover in 2013, but it will grow at a slower pace in than
the past," said the think tank in the report. "The government should take
measures to boost the economy including front-loading fiscal spending."