BOK Revises Economic Growth Rate from 3.2 to 3.8%

The Bank of Korea(BOK) revised Korea's economic growth rate for the current year from its initial projection of 3.2 percent to 3.8 percent.
Jun Cheol Hwan, governor of BOK, on April 8 said, 'The economic growth rate of the first quarter is expected to be 3 percent and the second quarter's performance should be around 4 percent. Against this backdrop, this year's growth rate is forecasted to soar to 3.8 percent.'
He attributed the recent brisk economic situation to the revitalization of consumer spending and increasing inventories.
'During the first quarter, the economic cycle formed a V-shape, which we had been anticipating. But we have to wait until August to get a more exact picture of the economic recovery', he added.
Analysts judge the shape or trajectory of the economic recovery, whether it resembles a V or a U-shape, depends on how strong the investment sentiment is in Korean industries.
Meanwhile, BOK Governor Jun forecasts this year's current account surplus at about 20 billion dollars, which is down 1 billion dollars from the initial projection due to rising oil prices. He also feels the inflation rate might reach 2.4 percent.

Shang-Bok Shim : simsb@joongang.co.kr