Monday, 20 April 2009

Korean economy to recover fastest: OECD


A new report has struck a positive outlook for Korean economy, Asia's fourth largest economy.
A study by the Organization for Economic Cooperation and Development (OECD) said that Korea's economy is likely to recover the fastest among its 30 member nations.
According to the OECD report released by the Strategy and Finance Ministry on Apr. 20, Korea's CLIs (Composite Leading Indicators) were recorded at 94.5 in February up 1.6 points from January while the average dropped by 0.7 to 92 points.
Composite Leading Indicators project a country's economic activity six months in advance by measuring indices such as industrial output, housing trends and gross domestic product.
A figure above 100 means the economy will expand, while a number below 100 forecasts a contraction.

Only eight OECD member nations, including Korea, recorded an increase in their CLI indices.
Mexico saw its February CLI rise 0.5 points, followed by Italy (0.4 points), Turkey (0.3 points), Finland (0.3 points), New Zealand (0.2 points), Poland (0.5 points) and France (0.1 points).

The steepest rise in the index for Korea in comparison to other OECD member nations suggests that Korea will recover the fastest from the global financial crisis.
The report also found that the economic outlook for the Group of Seven advanced nations remains gloomy.
Strategy and Finance Ministry officials analyze that the rise stems from some improving economic indicators including industrial output and a stabilizing financial market backed by expanded liquidity

However, officials warn that, since Korea's CLI -- along with that of other OECD member nations -- still remains below 100, it means the global economy is still sluggish and it may be too early to be overly optimistic about a quick V-shaped economic recovery for the country.

Written By Han Aran (Korea.net Staff Writer)

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