UOB Group’s Economist Ho Woei Chen, CFA, remarks on the 2021 GDP figures in South Korea.
“South Korea’s 4Q21 GDP boom was once in line with consensus and our forecast at 4.1% y/y, 1.1% q/q seasonally-adjusted as it maintained a regular recovery. The South Korean economic system recovered by using 4.0% in 2021 from a contraction of 0.9% in 2020.”
“We see sturdy exterior demand (in precise for science products), gradual restoration in non-public consumption as nicely as authorities help measures to preserve South Korea’s increase at an common of 3.0% in 2022, in line with Bank of Korea (BOK)’s and our forecasts.”
“The sturdy monetary backdrop and greater inflation endorse that the BOK will proceed with its financial coverage tightening this year. We hold our forecast for any other 50 bps activity fee hike to 1.75% by way of end-2022 given the hawkish posturing, in all likelihood with 25 bps every in 2Q and 3Q.”