The Republic of Korea (RoK)’s economy showed signs of a faster-than-expected recovery in the third quarter of the year and the pace was considered the fastest among the world’s developing nations.
According to the Ministry of Strategy and Finance, the Bank of Korea and economic research institutes of the RoK, the country posted an economic growth rate of around 1 percent in the third quarter while its major businesses, taken alone, recorded profit increases of 2-3 times last year’s figures and all basic economic indicators have returned to pre-crisis levels.
The nation recorded a high trade surplus in the first nine months of the year. In September alone, exports turnover reached 35 billion USD and imports hit 29.6 billion USD. The country’s trade surplus is forecast to be 40 billion USD this year.
The Ministry of Strategy and Finance predicted that the country’s budget surplus will likely exceed 30 billion USD this year, a forecast which is even higher than the 25 billion USD amount predicted by the government.
Its financial market is stable with its foreign exchange dropping from 1,570 KRW/USD in March to 1,178 KRW/USD by the end of September. This is the first time the foreign exchange rate has fallen below 1,200 KRW/USD since October 2008.
Also in the July-September period, the country’s unemployment rate decreased from 4 percent in June to 3.7 percent in August. This is the fastest decrease for this rate during the period among nations in the Organization for Economic Cooperation and Development (OECD).
The International Monetary Fund, the Korea Development Research Institute and other organisations increased their forecast levels for RoK’s economic growth to 4 percent in 2010, with inflation of more than 2 percent./.