Bank of Korea Maintains Growth Forecast

The Bank of Korea has confirmed its previous forecast, predicting a modest 0.2% growth in South Korea's real GDP for the first quarter of the year. This projection comes despite various economic challenges and efforts to stimulate domestic demand.

Factors Influencing the Forecast

Kang Chang-goo, director of national income at the Bank of Korea, highlighted the sluggish trend in recent credit card usage and customs export data from January to February. Despite government measures to boost the economy, such as tax reductions and increased investment in social overhead capital, the effects have yet to significantly impact growth rates.

Looking Ahead

Lee Hyun-young from the Bank of Korea shared insights into the data analysis, mentioning the expected impact of new mobile phone model releases in February's data. The effectiveness of the individual consumption tax reduction policy, implemented in January, remains to be seen in the coming months. The official preliminary figure for the first quarter growth rate is anticipated in April, marking a critical period for South Korea's economy, heavily reliant on exports and technology.