KIET : S.Korea's GDP to Grow 5.8% This Year

A local think tank is predicting South Korea’s gross domestic product (GDP) will grow five-point-eight percent this year, the highest figure since 2003. 

The Korea Institute for Industrial Economics and Trade made the prediction in a macroeconomic outlook report for the second half of the year. 

The think tank said the nation’s exports will jump 24-point-four percent, bolstered by bullish shipments of semiconductor chips, petrochemical products and automobiles. It expected imports will also surge 31-point-four percent. 

Overall the think tank says South Korea will post a trade surplus of about 27-point-seven billion U.S. dollars this year. 

The institute said the debt crisis in southern Europe will be the biggest concern for the South Korean economy in the year’s second half. Other negative factors include aggravated fiscal health resulting from last year’s massive pump-priming projects and major economies’ exit strategies from stimulus packages.