[Capture News] Failed Bank of Korea's Economic Outlook...South Korea's 'growth engine' turned off

This year's growth rate, announced by the Bank of Korea in August, is 2.4%.

It was down 0.1%p from the previous forecast, and the slow recovery of domestic demand was the reason.

At that time, the premise was 'strong exports', but it was unexpected.

Growth shrank to one-fifth of the BOK's forecast in the third quarter as exports slumped to negative territory.

Domestic demand has been surprisingly good, avoiding reverse growth.

The problem is that domestic demand is not easy in the future.

In fact, the business outlook is the darkest it has been in 13 months.

The business sentiment index surveyed by the Bank of Korea is also expected to fall.

Against this backdrop, the Bank of Korea has signaled a downward revision of its growth rate this year.

[Shin Seung-cheol / Director of Economic Statistics, Bank of Korea (last 24th): The performance figures are lower than expected in the third quarter, so wouldn't 2.4% be a little difficult if you just think about it arithmetically?].]

As the red light turns on the export-oriented growth path, there are also growing calls for a further cut in the benchmark interest rate.

[Seok Byung-hoon / Professor of Economics at Ewha Womans University] The increase in household loans can be curbed by the regulation of loans by financial authorities. The Bank of Korea believes it should make further cuts to its benchmark interest rate as soon as possible, focusing on the economy.]

Amid speculation that discussions on rate cuts will be focused at the Monetary Policy Committee next month
The rise in the won-dollar exchange rate, which soared to around KRW 1,390
, is expected to be another variable.

I'm Lee Hyungwon of YTN.

Edit Video|Lee Eun-kyung
graphic|Lee Won-hee
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