Lower the growth rate, increase the prices...'Warning sound' that's getting louder.

2025.01.11. AM 03:41
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[Anchor]
As political unrest continues after the emergency martial law, warnings about our economy are growing.

Global investment banks have lowered growth rates and raised prices, but state-run research institutes have also diagnosed that downside risks to the economy are growing.

I'm reporter Lee Hyungwon.

[Reporter]
Foreign investors' eyes on our economy are getting cold.

According to the global investment banks' forecasts,
In just one month,
has lowered its growth rate by 0.1%p this year.

The Bank of Korea released 1.9% at the end of November last year

is lower than the 1.8% expected earlier this year by the government.

Some investment banks have lowered our growth rate to 1.3%,

The aftermath of the emergency martial law was attributed to the deepening of the sluggish domestic demand.

[Juwon / Head of Economic Research at Hyundai Research Institute: From the outside, Korean society seems to have a lot of uncertainty and will eventually move on to economic issues, so for the time being, the trend of competitively lowering (growth rate) will continue....]

The price burden is expected to increase.It is analyzed that the fixed exchange rate between

and the dollar will be around 1,400 won, which will be a direct hit to prices.

This is because import prices have risen due to the strong dollar, and consumer prices have no choice but to rise with a time lag.

[Seo Jeong-hoon / Senior Researcher at Hana Bank: (Income inflation) is reflected in (domestic) inflation after one quarter or two quarters at the most. (In the end) rising exchange rates are at the core of the factors that have a lot of influence on dampening consumer sentiment overall....]

In this situation, KDI, a national research institute, also diagnosed that the risk of downside to the economy has increased for the first time in two years.

As internal and external warnings against the Korean economy grow, the Bank of Korea's agony ahead of the decision on the benchmark interest rate on the 16th is deepening.

I'm Lee Hyungwon of YTN.





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