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According to Yonhap News,
SEOUL, Sept. 24 (Yonhap) -- International ratings agency Standard and Poor's on Thursday raised South Korea's growth outlook for this year, as China is expected to lead Asia's uneven recovery from the coronavirus pandemic.
South Korea's economy is expected to shrink 0.9 percent this year, compared with its earlier forecast of a 1.5-percent contraction, S&P said in a report.
However, S&P cut South Korea's growth outlook for next year to 3.6 percent, from its earlier projection of a 4-percent expansion.
S&P expected Asia-Pacific economies to shrink 2 percent this year and rebound 6.9 percent next year.
"This will still leave the region almost 5 percent below the pre-COVID trend by end 2021," it said.
"The pandemic is not over but the worst of its economic impact has passed," said Shaun Roache, Asia-Pacific chief economist for S&P Global Ratings.
"Governments are adopting more targeted strategies for flattening COVID curves, with less recourse to nationwide lockdowns. Households are spending again on services as well as goods," Roache said.
In late August, the Bank of Korea trimmed its growth outlook and froze the key interest rate at a record low of 0.5 percent as uncertainties stemming from spiking virus cases heightened.
The central bank forecast a 1.3 percent contraction for the Korean economy in 2020, sharper than its earlier estimate in May of a 0.2 percent retreat.
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Source: Yonhap News (Sep 24, 2020)* This article was translated from Korean.