Output of South Korea's machinery industry is expected to rise 5.1 percent on-year to 453.7 trillion won (US$424 billion) next year, with its growth likely to turn around slightly on a possible recovery in the global economy, a trade association said Friday.

Machinery exports are forecast to grow 8.9 percent from a year earlier to $194.6 billion next year, with the machinery industry expected to post a trade surplus of $88.9 billion, according to a report by the Korea Association of Machinery Industry (KOAMI).

In 2012, sluggish domestic facility investment and the deepening global slowdown weighed heavily on the country's machinery industry.

South Korea's machinery output is expected to climb 3.9 percent on-year to 431.8 trillion won this year, while machinery exports are forecast to rise 8.4 percent to $178.7 billion.

The association forecast that the machinery industry will remain sluggish in the first six months of next year due to a stronger local currency and a slump in global demand.

However, it will make a rebound in the latter half on the back of China's stimulus plans and a possible recovery in housing construction and investment in the United States.

 

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Source: Yonhap News (Dec. 28, 2012)