Wishes for Korean economy in the New Year
|Author||DoHoon Kim||Date||2014.01.01||Issue No||576|
The new year of 2014 has started. I wish you who had an interest and showed full support for [e-KIET issues & analysis] in ordinary days a happy new year.
Last year, our economy regained increasing pattern on exports. Also although it was occurred slowly, we escaped from the slump which we confronted in the last year due to the recovery on domestic demand supported by government pump priming. Of course it is hard to say our economy enters the right track because annual rate of economic growth still doesn't reach on our potential rate of economic growth and common people can't actually notice the economic recovery in their real lives. But it is inspiring that our economy has recovery trend. This trend is expected to continue in the New Year. KIET anticipates environments surrounding our economy will become more positive than last year.
Therefore it is expected that we will achieve economic growth near the level of potential economic growth. Unfortunately, there are many hindrances to achieve this recovery. First obstacle is expected negative effects on our economy caused by decreasing quantitative easing of America. Also, trend of a weak Yen and a high Won plus gradually-deceasing rate of Chinese economy would be variables to harm the recovery trend of our economy. There is still a problem related to households’ debt when we turn our eyes on domestic economy.
In the New Year, our economy has hard mission to continue recovery trend and enhance durability of the economy in those tough domestic and foreign conditions. But when we look back on how wisely we overcame in the past economic crisis, I strongly believe our economic will not only recover sufficiently but also be level-upped in world economy if government and the private sector put their hands together to tackle problems. KIET will do its best on policy research for invigoration of real economy working in concert with the government and business circles.
I hope there will be always luck on your home and workplace in the New Year. I promise our research staffs will be more faithful to their role as a think-tank for the nation's industry development.
Jan. 1st, 2014.
President of KIET, DoHoon Kim