December 24, 1999 
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| December 24, 1999 | atimes.com | |
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| The Koreas 7.8% growth predicted for next year SEOUL - The Korea Development Institute (KDI) forecasts economic growth to reach 7.8 percent next year after recording 10.1 percent in 1999. The KDI says growth of gross domestic product will reach 13 percent in the fourth quarter of this year, following 12.3 percent in the third, 9.9 percent in the second and 4.5 percent in the first. GDP growth will slow to 9.3 percent in the first half of next year and 6.5 percent in the second for an annual rate of 7.8 percent, up 2 percentage points from the KDI's original forecast released in October. Consumer prices will rise 0.8 percent this year and 3.2 percent next year. Growth of exports will slow to 11.7 percent and that of imports 18.1 percent next year from 18 and 30.4 percent for this year. Inflation, if it occurs amid financial instability, will worsen corporate profitability and lead to business jitters, the KDI predicts. For this reason, top priority for next year should be placed on price stabilization by operating currency and fiscal policies in a conservative manner. The government should help financial institutions maintain their health to prepare for the adverse effect of massive capital inflow, reduce maturity extensions for loans to insolvent companies and minimize the injection of public funds in connection with the restructuring of the Daewoo Group and investment and trust companies heavily exposed to Daewoo bonds. The Ministry of Commerce, Industry and Energy said meanwhile that foreign investment in South Korea this year reached $15.2 billion as of Thursday and will reach $15.5 billion by the end of the year. The amount surpasses this year's target of $15 billion and is the largest amount recorded. South Korea ranks 14th worldwide in the amount of foreign investment this year, up from 21st last year, and ranks second in Asia after China. The nation attracted $3.57 million in foreign investment in 1962, surpassed $100 million in 1972 and $1 billion in 1987. Total foreign investment between 1962 and the end of this year reached $49 billion. (Asia Pulse/Yonhap) | |||||||||
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