KIET Forecasts Brighter 1999

The Korean economy should get better next year after suffering until the end of this year, the Korea Institute for Industrial Economics and Trade(KIET) stated on September 20.
KIET issued the '98-99 National Economy Perspective' and predicted that the growth rate in the second half of this year will be minus 7.8% due to declining consumption and the sluggish export trend. The number is the worst since figures for economic growth rate outlook, were compiled in 1953.
However, amidst the gloom and doom, KIET forecasted that starting next year the economy will ignite owing to various supporting measures from the government including increased governmental fund issuing. As a result of these measures, KIET posits that the growth rate in 1999 will reach 2.1%. The rate of consumption is expected to plunge this year to minus 14.9%, but rebound to plus 0.9% next year. The working accounts, which the Korean government is striving to prop up, are especially still in good shape and it will be 40 billion dollars in the black this year.