Economic Research Institute Heads: “Korean Economy to Grow 2.2 Percent in 2009”

Domestic economic research institute heads forecasted the Korean economy to grow 2.2 percent in 2009 choosing the biggest obstacle to be faced by the Korean economy as “household and corporate bankruptcy and restructuring”.


The monthly magazine released by the Federation of Korean Industries surveyed 14 private economic research institute heads including the Korea Economic Research Institute, Samsung Economic Research Institute, Hyundai Economic Research Institute, Korea Development Institute, and Korea Institute for Industrial Economics & Trade.

Economic research institutes forecasted the Korean economy to grow 2.2 percent in 2009, a 2.7 percentage point drop from last year.


For the biggest snag to be seen in the Korean economy next year, the surveyed selected “household and corporate bankruptcy and restructuring” followed by deteriorated economy both home and abroad, real economy recession, persisting global economic crisis, and employment insecurity.


The respondents also anticipated the won-dollar exchange rate, projected to be the largest variable for management plan establishment, at an average of 1,190 won, and oil prices at an average of $56 per barrel in terms of West Texas Intermediate.


All the surveyed predicted the Korean economy to “sharply worsen” or “worsen” next year, while around 70 percent of the respondents answered the recent global economic crisis to “recover from the second half next year” and the domestic economy to stabilize “starting the first half of 2010.”