Anchor: Local and international institutions are projecting that South Korea’s economy will improve modestly in 2020. However, global uncertainties such as the U.S.-China trade dispute are likely to continue weighing on the domestic economy.
Lee Bo-kyung has this story.

Report: Late last month, domestic and international think tanks and financial institutions predicted the South Korean economy will expand around two-point-two percent to two-point-three percent in the new year.

The International Monetary Fund forecast the local economy will grow two-point-two percent, while the Bank of Korea, the Korea Development Institute(KDI) and the Organization for Economic Cooperation and Development(OECD) presented an outlook of two-point-three percent. 

Seoul issued a more optimistic forecast of two-point-four percent growth.

Based on such projections, the Korean economy will likely improve slightly in 2020 compared to last year when the weakest estimated annual growth in a decade was recorded at around two percent. 

The projections are mostly based on expectations for improvement in exports and capital investment, both of which posted negative growth last year. 

The KDI said capital investment is expected to increase eight percent this year on the back of an anticipated recovery in the global chip market. The institution also projects exports to rise by three-point-two percent.

Private consumption is predicted to increase slightly in the new year as consumer sentiment is showing signs of recovery following the announcement of an interim trade deal between the U.S. and China. 

Employment is expected to increase about 150-thousand to 200-thousand in 2020, although the pace of growth will likely be slower than last year when 280-thousand jobs were added.

Last month, the government pledged to mobilize all possible policy means to boost domestic consumption and exports in the new year with support from the country’s largest-ever budget of 512-point-three trillion won.
Lee Bo-kyung, KBS World Radio News.