Macroeconomic Developments
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영문초록
The Korean economy weakened more than initially anticipated, with the growth rates in exports and domestic demand remaining at low levels. Both domestic and global economies are once again muddled in a cloud of uncertainties as the domestic demand shrinks in such areas as facility investment and exports contract following weakened external conditions. Although there still remain the upside and downside risks as to the economic growth path, the downside risks dominate. KIF is currently in the process of revising our macroeconomic forecast of 2012 announced in April. The revised figures will be announced soon. There are high downside risks to our previous GDP growt forecast of 3.4%. Korean economy`s slower-than-expected growth is due to the prolonging euro zone debt crisis and high burden of domestic households` debt. The Korean economy, however, may be gradually improved later in H2 this year as the global financial instability subsides.
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