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Wishes for the Korean economy in the New Year

Author Kim DoHoon Date 2016.01.01 Issue No 625
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A new year of the red monkey (丙申) has dawned upon us. I would like to send my new year’s greetings to you and express my appreciation for your continued interest and support for「e-KIET Issues & Analysis」

Last year, the Korean economy faced some difficulties as exports continued to decrease due to the sluggish world economy. Propelled by an aggressive stimulus package by the government, investment picked up relatively and in the latter half, private consumption showed steady growth, recovering from the impact of MERS in the beginning of last year. Yet, as exports decreased significantly, the entire economy had a tough time.  

 

This year it is expected that export sluggishness would be eased and the domestic economy would be slightly better than last year with the improved world economy and trade environment. However, the internal and external environments surrounding the Korean economy are not that bright. It is expected that the stagnant world economy would be improved but growth would go up only slightly, as high uncertainties still remain. Internally there are issues unsolved such as housing debt, stagnant imports and restructuring of insolvent companies. Therefore, this year the Korean economy has tasks to tackle such as improving economic fundamentals and strengthening foundations through efforts to implement economic reforms   while maintaining the trend of recovery amid such domestically and globally unstable conditions. KIET will play a key part in achieving such tasks through analyzing current issues of real economy and developing policies. 

Celebrating the new year, I wish you good luck at home and work, and KIET researchers promise to be more faithful in performing their role of a think tank for industrial researches and development of real economy policies in Korea.