Thursday, April 24, 2008
Economy is Slow Going
Finally, some really good numbers on the South Korean economy thanks to first quarter reports. The news is not rosy as the economy is at its slowest expansion in 3 years. Factors of the economic slowdown include the rise in oil costs and consumer spending decreasing by the day. The second quarter is predicted to slow even more adding pressure to President Lee's new to-do-list. It appears that although raw input costs have risen which inevitably halts corporate spending and expansion, South Korea is simply reflecting the impact of the global recession caused by the US credit crisis. Time will tell if the Bank of Korea will also be reduced to cutting interest rates like in so many other countries have when faced with the dire need to stimulate the economy. For a complete article and the quips of senior South Korean economists, click here.