South Korea - Economist Intelligence Unit - The Economist
DOMESTIC POLITICS: The president, Lee Myung-bak of the GNP, has his work cut out for him if he is to steer the economy through the current downturn and maintain support among the electorate. A broadly favourable public and market view of his new economic team, appointed in January, is beginning to make Lee Myung-bak look a little more like the competent chief executive officer that he once was for the construction arm of the Hyundai conglomerate, instead of the hapless and blundering figure that he cut for most of his uncomfortable and unconvincing first year in office. He must also face the repercussions of the suicide of the previous president, Roh Moo-hyun. Political foes of the current president may use this as a rallying point to intensify opposition to him. Whether or not Roh Moo-hyun was guilty of corruption may never be known, as the investigation of his family is now closed. Critics claim that the probe was politically biased, targeting the previous president while sparing associates of Lee Myung-bak, several of whom were also implicated. Many believe that Roh Moo-hyun was hounded by prosecutors. His death may now prove to be a focus for, and catalyse, ongoing political faultlines.
Country Forecast Overview (3 Year)
| Key Indicators |
2008 |
2009 |
2010 |
| Real GDP Growth (%) |
1.80 |
-5.40 |
.40 |
| Consumer Price Inflation (av;%) |
4.67 |
1.60 |
1.50 |
| Budget Balance (% of GDP) |
1.16 |
-5.70 |
-4.00 |
| Current-Account Balance (% of GDP) |
-.68 |
2.90 |
2.90 |
| Exchange Rate US$:Euro (av) |
1102.05 |
1302.26 |
1243.90 |
| Exchange Rate US$:Euro(year-end) |
1259.50 |
1273.00 |
1226.00 |
South Korea GDP PPP & GDP Growth Rates
2004 - 2008
| Year |
GDP in Billions of USD PPP |
% GDP Growth |
| 2004 |
1,041.22 |
3.95 |
| 2005 |
1,096.74 |
3.51 |
| 2006 |
1,192.54 |
4.30 |
| 2007 |
1,301.60 |
4.60 |
| 2008 |
1,359.48 |
1.80 |
Source: EIU Country Data
South Korea: risk assessment
| Risk |
June 2009 |
| Sovereign risk |
BB |
| Currency risk |
BB |
| Banking sector risk |
BB |
| Political risk |
BBB |
| Economic structure risk |
BBB |
|
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