Monday, January 6th, 2014
SEOUL, KOREA - Nomura Securities said on January 3 in a stock market forum Korea's GDP growth rate for 2014 would be 4.0 percent, with KOSPI reaching as high as 2,350 by the year's end, or 18 percent from the current 1,950 level.
Kwon Young-sun, chief economist for Nomura Securities, said, "Although the GDP growth for the Korean economy was below the global average in 2013, it is expected to rise this year to the mid-3 percent level." His predictions were based on the grounds that the housing market would revive as restructuring in many companies is drawing to a close while domestic consumption will contribute as much to economic growth as exports. He also said the problem of household debt will be eased.
With a rise in current account surplus, he added, the won-dollar exchange rate is expected to maintain the current level of 1,060 won a dollar. As for the won-yen exchange rate (per 100 yen), it may fall below the 1,000-won level as the yen value against the dollar goes below 110 yen.