Korea’s economy forecast to expand in H2: OECD

South Korea’s economy is expected to expand in the second half of this year despite cloudy external market situations caused by prolonged eurozone debt problems, data showed Monday.

According to the data released by the Organization for Economic Cooperation and Development, the composite leading indicator of economic activity for South Korea inched up to 100.1 in April, up from 99.9 in the previous month.

This is the first time in 11 months the indicator for Korea has surpassed the 100 mark. South Korea’s CLI has been on the rise since the indicator dropped to a low of 99.2 in November 2011.

The CLI is an indicator that gauges how the economy will fare four to six months ahead by measuring industrial output, gross domestic product, and housing and financial market conditions. A reading above 100 means the economy will expand. (Yonhap News)

Such improving figures come as South Korea’s economy is faced with strong headwinds from toughening external market situations. (Yonhap News)

The eurozone debt problems and possible global slowdown are putting a drag on the country’s export-oriented economy, experts said.

Last week, Finance Minister Bahk Jae-wan expressed concerns over situations confronting the domestic economy, saying its full-fledged economic recovery is being delayed.

Citing uncertainties over global export markets, the government recently revised down its growth outlook for this year from 3.7 percent to 3.3 percent. 

(Yonhap News)