[THE INVESTOR] South Korea’s economy will grow at a slightly higher pace in 2017, the Bank of Korea projected.

In the monetary policy report submitted to the National Assembly on July 29, the BOK said that next year will see a small increase in growth rate compared to the upper 2 percent range forecast for this year. 


“The domestic economy is following an improving trend since the first quarter, but due to increasing uncertainties at home and abroad, growth rate for the year will be in the higher 2 percent range,” the BOK said in the report.

“Next year, buoyed by the recovery of the global economy, the growth rate will increase by a small margin.”

The BOK said that the supplementary budget, lowered benchmark rates and stabilizing international oil prices would be positive factors for the country’s economy in the near future. For negative factors, the central bank listed the UK’s departure from the European Union, corporate restructuring projects and US Federal Reserve’s pending decision on US’ benchmark rate.

By Choi He-suk (cheesuk@heraldcorp.com)