Home News Fitch Ratings downgrades South Korea’s economic growth to 2.4%

Fitch Ratings downgrades South Korea’s economic growth to 2.4%

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The growth rate of the South Korean economy in 2022 will be 2.4%. This is reported by Yonhap News with reference to representatives of the international rating agency Fith Ratings.

Compared to the March forecast, the indicator is down 0.3%.

Experts note that this decision was made in connection with the slowdown in the global economy and the economic downturn in China. Among the additional economic “hurdles”, the agency also pointed to the Ukrainian crisis, the tightening of monetary policy by large banks, as well as potential lockdowns in China.

In May this year, the consumer price index in South Korea rose by 5.4%, which was the highest figure in the past 14 years. Fith Ratings experts believe that inflation will continue to rise, as high energy and raw materials prices have led to an increase in production costs.

The agency assumes that the Bank of Korea will raise the discount rate by 0.5 percentage points by the end of the year and keep it at the level…

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