OECD expects Korea to grow 4.4% in 2007

Seoul--(뉴스와이어)--Korea's output growth is expected to ease from 5% in 2006 to around 4.5 per cent in 2007-08 as a result of less buoyant domestic demand, according to the Economic Outlook of the Organization for Economic Cooperation and Development (OECD) released on November 28, 2006.

When it comes to the outlook of major economies, the US output growth has slowed from the rapid rates of recent years. House-building has declined especially sharply. But with this and other adjustments being localised and temporary, healthy growth in GDP should soon resume, said the report.

As for Japan, the current economic recovery, the longest in Japan's post-war history, has matured into a self-sustained expansion driven by private domestic demand. The expansion is projected to continue, with growth of about 2% in 2007-08, thanks to buoyant business investment underpinned by record corporate profits and private consumption. Inflation is expected to increase only gradually, said the OECD.

For the Euro area, the report said that after several false starts, the economic recovery has taken hold. Activity in the first half of 2006 grew at the fastest pace for some years. Exports and investment have been the main drivers but there are signs that households have started to boost spending as well. Consumption should underpin the recovery going forward, with business and residential investment playing less of a role than they have done recently. Overall, GDP is projected to grow in the 2 to 2.5 per cent range through 2007 and 2008.


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