South Korea's economy is likely to show the fastest recovery among the major economies, with a growth of 4 to 5 percent expected for 2011, vice president of the World Bank said
on June 22.
During an interview with Yonhap News Agency, Justin Yifu Lin, World Bank chief economist and senior vice president, said the South Korean economy is forecasted to mark a decline of 3 to 3.5 percent this year, but it will likely make an upturn in 2010 and 2011 of a 2 percent- and 4 to 5 percent-growth, respectively.
Lin pointed at the well-structured fundamentals and good macroeconomic health as possible reasons behind the expected rebound in the South Korean economy.
Lin also said not only the South Korean government's own stimulus policies but also the country's close relationship with the Chinese economy, which has been boosted by pump-priming measures and rising investment, would possibly contribute to South Korea's economic recovery.
"In addition to the effect of Korea's own fiscal stimulus, the recovery of the first quarter of 2009 is also related to rising import demand from China as the effects of the nation's large fiscal stimulus and strong investment began to take hold," Lin was quoted as saying by Yonhap.
However, he said the positive outlook on the South Korean economy is likely only under the condition of a global economic recovery.
A sustainable rebound for South Korea's economy will depend on how the global economy will turn out down the road, he added.
Meanwhile, he also expected that the global economy will show a "weak" recovery next year as the financial system remains "fragile."
Source:Xinhua
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