Korea’s economy is forecast to continue to expand 3 percent on-year in 2018, a private think tank said on Nov. 29.
Asia’s fourth-largest economy is likely to achieve the growth rate in the coming year following a 3.2 percent on-year expansion this year, according to the Woori Finance Research Institute affiliated with Woori Bank.
“Private consumption is expected to be better in 2018 than this year, and growth of exports and investment are likely to remain good,” it said in a research note.
Consumer spending is projected to climb 2.8 percent on-year in 2018 thanks to a government policy drive to increase household income, compared with a 2.3 percent gain this year.
Buoyed by a global economic recovery and a rise in demand for tech products, overseas shipments of South Korean goods are predicted to 8.9 percent next year from 2017, with corporate capital spending likely to swell 7.6 percent.
Growth of construction investment, however, is forecast to slow to 3.8 percent in 2018 from 8.3 percent this year.
For this year, the Woori Finance Research Institute said economic growth will likely gather ground thanks to the effect of an 11 trillion-won (US$10.20 billion) extra budget bill and improving consumer spending in the second half.
By Alex Lee and newswires (email@example.com