BOK governor lowers growth forecast for this year

Bank of Korea Governor Lee Chang-yong said Tuesday that the country’s annual economic growth rate is expected to fall below the August forecast of 2.4%, mainly due to sluggish exports. However, he dismissed concerns about a recession, stating he "cannot agree" with the notion. He also opposed the idea of broad economic stimulus measures, citing potential downsides.

Speaking at a parliamentary audit by the National Assembly’s Strategy and Finance Committee, Lee predicted that the growth rate could decline to around 2.2% to 2.3%, down from the central bank's previous estimate of 2.4%. The adjustment reflects third-quarter export figures, which dropped 0.4% from the previous quarter, bringing the quarter’s growth rate to 0.1%—well below the Bank of Korea’s projection of 0.5%.

The central bank governor attributed the downturn in growth mainly to reduced export volumes. “While the export value hasn’t decreased, export volumes have,” he noted. “It is essential to analyze whether this decline stems from temporary factors, such as recent auto industry strikes, or from deeper issues related to competitiveness.” Looking ahead, Governor Lee refrained from making firm predictions on next year’s growth, explaining, “Domestic demand is recovering as expected, but exports will depend on external factors such as the U.S. presidential election and China’s economic recovery.”


이동훈 기자 dhlee@donga.com