SEOUL: Foreign investment banks (IBs) expect the South Korean economy to see its growth improve at a gradual pace next year, helped by global stimuli and the recovery of domestic demand, a report showed Tuesday.
Morgan Stanley projected the monetary easing by the United States and China will improve global economic conditions, benefiting South Korea's exports, a main driver of the country's growth, according to a report by the Korea Center for International Finance, (Yonhap) reported today.
South Korea grew 0.2% on-quarter in the July-September period, the slowest pace in nearly three years in the face of the global economic downturn.
Barclays Capital and Goldman Sachs noted Korea's exports have been recovering since June, predicting that its competitiveness in brand values bodes well for its outbound shipments in 2013.
Exports for Asia's fourth-largest economy increased 1.2% on-year in October, marking an expansion for the first time in four months.
Other IBs, including JP Morgan, added possible negative impacts of the local currency's rise will likely be offset by a steady growth in exports to be seen for next year. (QNA)
