SEOUL, KOREA - Korea's gross domestic products growth rate last year is estimated to rank ninth out of ten Asian economies. Korea's growth forecast for the new year is also at the bottom of the pack, raising the fears that it may be falling behind the high-growth Asian emerging economies.

 

According to the Ministry of Strategy & Finance and the International Finance Center on January 16, the consensus 2013 real growth rate made by major investment banks such as Morgan Stanley, J.P. Morgan, and Goldman Sachs for the Korean economy is 2.8 percent. This is ninth after those of China (7.7%), the Philippines (7.0%), Indonesia (5.7%), India (4.6%), Malaysia (4.5%), Singapore (3.7%), Hong Kong (3.0%), and Thailand (3.0%). The only Asian economy whose 2013 growth rate is behind that of Korea is Taiwan (2.0%).

 

Korea's economic prospect will be slightly improved in 2014, but won't be able to pull out of the bottom rank. The 2014 average growth forecast for Korea made by ten investment banks was 3.8 percent. As for current account surplus in relation to GDP, Korea is ranked third in Asia at 5.4 percent, following Singapore (14.1%) and Taiwan (10.9%).

 

A Ministry of Strategy & Finance official said, "Although the third-quarter growth rate has recovered to the 3-percent level in seven quarters, the overall economic conditions are not so favorable given the still-depressed housing market, consumer debt overhang, and low domestic consumption. Exports, the only sector that has enjoyed good times for years, are not enough to prop up the whole economy."