According to Shaun Roache, Asia Pacific Chief Economist at S&P Global Ratings, the biggest risks to the South Korean economy is the growing deflationary pressure at home.
Key Quotes:
To cut S. Korea 2019-2020 GDP growth forecasts soon.
To cut S. Korea 2019 GDP growth forecast to around 1.9% vs 2.0%, that for 2020 to around 2.2% vs 2.6%.
Sees two more rate cuts by Bank of Korea by early 2020 vs. no cut seen previously.
Deflation threat is main domestic risk to S. Korea’s economy.
Bank of Korea should focus on boosting inflation, instead of placing a priority on containing housing prices.
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