Signs of money changers are seen at the Myeongdong shopping area in Seoul, South Korea, on Nov. 24, 2022. (Xinhua/Wang Yiliang)
The South Korean government revised its real gross domestic product (GDP) growth to 1.4 percent in 2023, down 0.2 percentage points from December's estimation last year, according to the Ministry of Economy and Finance.
SEOUL, July 5 (Xinhua) -- The South Korean government on Tuesday revised down its 2023 economic growth outlook by 0.2 percentage points compared to seven months ago to reflect its gloomier forecast for export.
Real gross domestic product (GDP), adjusted for inflation, was estimated to grow 1.4 percent in 2023, according to the Ministry of Economy and Finance.
It was down 0.2 percentage points from the ministry's estimate unveiled in December last year.
The ministry's forecast was lower than the estimates of 1.5 percent from the Korea Development Institute (KDI), the International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD).
The ministry expected the country's export to decline 6.6 percent this year, marking a downward revision from the previous outlook of a 4.5 percent reduction.
The outbound shipment continued to fall for the ninth consecutive month through June on soft global demand for locally-made products, especially semiconductors.
People look at a car battery solution during the World Climate Industry Expo at the Busan Exhibition & Convention Center (BEXCO) in Busan, South Korea, May 25, 2023. (Xinhua/WangYiliang)
The ministry said the export may rebound in the second half of this year thanks to the low base effect.
Import was forecast to reduce 8.6 percent this year on the back of the lower global energy prices and the weaker demand for capital goods.
The outlook for the current account surplus was set at 23 billion U.S. dollars in 2023.
Private consumption was predicted to expand 2.5 percent this year, unchanged from the previous estimate.
Construction investment was projected to rise 0.6 percent on the expected resumption of the delayed construction, but facility investment was forecast to slump 1.2 percent due to the semiconductor sector's slowdown.
The ministry revised down this year's outlook for headline inflation by 0.2 percentage points to 3.3 percent.
The downward revision was attributed to lower prices for raw materials and farm goods.
The country's consumer price inflation slowed down this year from 5.2 percent in January to 4.8 percent in February, 4.2 percent in March, 3.7 percent in April, 3.3 percent in May, and 2.7 percent in June.
The ministry noted that uncertainties remained over the inflation forecast, referring to higher public utility charges, weather conditions, and geopolitical risks in Europe.
The number of jobs was expected to increase 320,000 in 2023, making an upward revision from the previous outlook of 100,000 growth.
The year-over-year growth in employment surpassed 300,000 for the fifth straight month through May. ■
