Economics
Bank of Korea Sees Possible Impact From China Deleveraging Plan
- South Korea GDP May Be 0.3 Percentage Point Less in 2018
- China defaults appear to be ‘natural’ restructuring procedure
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The economy of South Korea, which is very reliant on China, may see more adverse impact than previously expected from China’s plan for deleveraging, the Bank of Korea said in a report on Sunday.
South Korea’s gross domestic product growth could be 0.3 percentage point less than expected in 2018 and maybe 1.2 percentage point less in 2020 because of Chin’s plan to cut financial risks by deleveraging, the central bank said in its report, citing data from Oxford Economics and Fitch. South Korea recently trimmed its forecast for growth to 2.9 percent for 2018 from an earlier projection of 3 percent, amid rising global trade tensions.