Prospects For the Economy in 1999

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Prospects For the Economy in 1999

The Korean economy is expected to recover in the second half of 1999 but it will not attain its former growth rate.
There is a possibility that unemployment, domestic consumption, and investment could continue to worsen. The value of the Korean won and interest rates will be stabilized but the positive trade balance scale is predicted to decrease.
Economists from many institutions indicated somewhat similar predictions at a seminar sponsored by the Federation of Korean Industries (FKI), 'The Korean economy needs a good conclusion to its financial and industrial restructuring, revitalization of domestic consumption, and further deregulation.'
The market will pass its lowest point somewhere around March or April and start to recover. The growth rate is expected to be 0.3%. The market depression is also predicted to continue in 1999. The Korean economy needs more positive policies including expanding budget expense and passive tax cuts to spark the economy.
Unemployment will continue to rise this year with the jobless rate reaching 7.8%. The number of unempoyed could reach 1.9 million in the year's first quarter. Salaries will continue to drop because company profits are continuing to decline.
The trend of lower exports will last into 1999. The trade balance is predicted to decrease to 30 billion dollars. Steel product exports are expected to drop whereas semi-conductors and motor exports will increase.
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