Korea Forecasts Slow 2024 Recovery, Chips and Rates to Aid Growth But Risks Remain
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Korea's economy is projected to recover slowly in 2024 with 2.3% GDP growth, down from 2024's 1.4%, though inflation will ease from 5% to around 3%.
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Interest rates are expected to fall in 2024, boosting the stock market, though the pace and timing depend on moves by the U.S. Federal Reserve.
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Chip exports are seen driving Korea's growth, recovering from production cuts and rising demand for AI and data centers.
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But global uncertainties like China's economy and U.S. and Korean elections could negatively impact growth.
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Defaults on real estate project financing loans also threaten the stability of construction firms and banks.