Shortcut to Body Shortcut to main menu

Invest Korea

Search

Investment News

  • Home
  • Information Center
  • Newsroom
  • Investment News
BlackRock Optimistic About Korean Market
Date
2015.01.22
Views
1155

According to Yonhap News,

(SEOUL=Yonhap News) BlackRock, the world’s largest asset manager, is optimistic about the Korean market and insists that the macroeconomic environment is shifting in favor of Korea.

Marc Desmidt, head of alpha strategies for Asia Pacific at BlackRock, held a press conference about the investment outlook for 2015 on January 15 in Yeouido and said, "The macroeconomic environment over the last few years has not been favorable for Korea, but it is now.”

"The fall of global oil prices acts positively toward highly energy dependent countries, including Korea. Therefore, most of Korea’s trade partners will benefit from the decrease in oil prices," analyzed Desmidt.

He expects the Bank of Korea will lower key interest rates by 0.25 percent points (25bp) within a few months. He also evaluated that the Korean government’s expansive financial policy will be effective for its economy.

He forecasts that Korea’s economic growth rate will increase to the 3.6-3.7 percent level in 2015 from last year’s 3.3-3.4 percent level.

"The weak won will improve the performance of companies. We have been very cautious about the outlook of the Korean market over the last few years. Now, however, we are very optimistic toward the market," emphasized Desmidt.

He also expects oil prices to be stabilized around the USD 55 per barrel level considering the marginal production cost of the existing petroleum production facilities is about USD 40 per barrel.

“The Federal Reserve of the United States will increase key interest rates by 0.25 percent points in mid-2015. It will not rush to make a further increase, but take very gradual approaches,” added Desmidt.

jhpark@yna.co.kr

Copyrights Yonhap News. All Rights Reserved.

Source Text

Source: Yonhap News (January. 15, 2015)

** This article was translated from the Korean.
Meta information