KIET Optimistic on Korean Economy

Following the lead set by civilian economic institutes, which are leveling up their predictions for Korea's economic growth rate, the government-run Korea Institute for Industrial Economics and Trade(KIET) forecasts a 5.1 percent growth rate for next year.
KIET, on April 4, released its '1999-2000 Economic Prospect' that predicts the nation's growth rate will reach 3.6 percent this year, barring any external upheavals such as an international finance crisis.
The growth rate for 2000 is especially optimistic: it is 0.3 percent higher than Wharton Institute's 4.8 percent.
The report expects the consumption rate in 2000 will increase by just 3.9 percent, while investment in construction and facilities will grow by 4.8 and 5.9 percent, respectively.
In terms of exports, the country should experience a 5.4 percent jump next year, but the trade surplus will only mark 15 billion dollars, far lower than 1998's 40 billion dollars due to a sharp rise in imports.
It estimates that the foreign exchange rate might drop to the 1000-won level versus the U.S. dollar in 2000.
Hwashik Bong : trojans@joongang.co.kr