Korea’s 2008 Growth Seen at Up to 5%: S&P Standard & Poor's (S&P) said that South Korea's economy is expected to grow by up to 5 percent in 2008 as stronger domestic demand may offset slowing demand from the U.S.
At the same time, it said Korea will survive a slowdown in the U.S. economy thanks to diversified export markets in the dynamic Asia Pacific region, S&P said Tuesday.
The international rating agency said South Korea's economic growth will come in at 4.5 percent to 5 percent year-on-year in 2008, compared with 4.3 percent to 4.8 percent projected for this year.
``In the United States, the economy is slowing down. That shouldn't be a surprise,'' said S&P chief economist David Wyss at a press meeting held in downtown Seoul. He said almost all of the weaknesses in the U.S. economy are coming from the one sector _ housing.
The economist expected home prices in the United States, which have already dropped 3.9 percent, to experience another 7 percent drop by this time next year. The good news, however, is that the rest of the world seems to be ignoring the slowdown in the United States, according to Wyss.
He attributed this to multiple growth engines in the world economy. China contributed to 30 percent of the world's growth last year, compared to the United States' 12 percent, and India's 11 percent.
# The Korea Times [OCTOBER 17, 2007]
Blank
