OECD ECONOMIC OUTLOOK PRELIMINARY EDITION
KOREA
The slowdown in the pace of economic activity during 2006 is likely to be gradually reversed in 2007, boosting output growth from around 4¼ per cent in 2007 to 4¾ per cent in 2008. Buoyant demand from other Asian countries is sustaining export growth at a double-digit rate, despite the marked appreciation of the won, which has helped keep inflation below the Bank of Korea’s target zone.
Monetary policy should aim at keeping inflation in the target zone over the medium term, while concern over rising housing prices should be addressed through measures to increase supply, particularly in the private sector. Korea should maintain a flexible exchange rate policy, while fiscal policy focuses on achieving a balanced budget over the medium term. Implementing the free trade agreement with the United States is likely to lead to significant efficiency gains.
KOREA
The slowdown in the pace of economic activity during 2006 is likely to be gradually reversed in 2007, boosting output growth from around 4¼ per cent in 2007 to 4¾ per cent in 2008. Buoyant demand from other Asian countries is sustaining export growth at a double-digit rate, despite the marked appreciation of the won, which has helped keep inflation below the Bank of Korea’s target zone.
Monetary policy should aim at keeping inflation in the target zone over the medium term, while concern over rising housing prices should be addressed through measures to increase supply, particularly in the private sector. Korea should maintain a flexible exchange rate policy, while fiscal policy focuses on achieving a balanced budget over the medium term. Implementing the free trade agreement with the United States is likely to lead to significant efficiency gains.
