Kim Yong-beom, Vice Finance Minister of South Korea, says that he expects the economic conditions to improve in the city and abroad early next year because of the trade truce between China and the United States. So, what are the factors that would make the country's economic status improve in 2020? Stratford Management Inc review business in Seoul Korea and how it could help you make financial decisions.
The Vice Finance Minister has mentioned this statement at a regular meeting on macroeconomic factors with the senior financial officials, easing the Brexit uncertainty. According to Kim, the economy is showing signs of a rebound. There is a modest gain on employment in November, with a steady rise in service consumption and output.
Economic Predictions for Korea in 2020
According to the Stratford Management Inc review business in Seoul Korea, the most common negative factors that significantly impact the economy are sluggish construction and export investments. However, there's an estimate of 2.4 percent growth in the Korean economy in 2020, with the anticipated series of policy regulating measures to boost consumption and investment, and memory chip sector recovery. As noted, the memory chip sector landed as the weakest sector this year with a weak annual growth due to the lengthy US-China trade war.
There's an expected growth of 2.0 percent in real gross domestic product or GDP, which will be adjusted for inflation from the 2.4 to 2.5 percent previously forecast. The 2020 economic outlook is higher as compared to figures announced. The central bank and the Korea Development Institute or KDI say that they expect 2.3 percent economic growth in 2020. The same is valid with the Organization for Economic Cooperation and Development or OECD. On the other hand, the International Monetary Fund or IMF predicted a 2.2 percent increase in the country's economic growth.
Stratford Management Inc review business in Seoul Korea predicts that international trade will recover next year along with the rise in the global semiconductor industry. The World Trade Organization or WTO expects that the worldwide business will gain 2.7 percent growth next year. The World Semiconductor Trade Statistics or WSTS organization says that the estimated revenue in the global chip sector is at 5.9 percent after gaining 12.8 percent this year. When it comes to importation, the expected growth is 2.5 percent in 2020 after it slid 6.4 percent in 2019.
The current account surplus expects an increase from 58 to 59.5 billion U.S. dollars in 2020. Also, the facility investment is perceived to advance to 5.2 percent in the new year. On the other hand, the construction investment is forecasted based on the current status four percent decline.
The government plans to bolster consumer spending by expanding welfare policies, most notably for low-income families. Also, the government is considering increasing senior basic pension to support the basic needs of the elderly and to improve the benefits of the underprivileged. Of course, the government tirelessly creates partnerships and mutual agreement with other countries to bring more investors and solidify business relationships with big companies or corporations worldwide.