By Choi Kyong-ae
Staff Reporter


South Korea is likely to rank last in economic growth rates of Asian countries, excluding Japan, with the growth rate expected to stay below 4.7 percent this year.





According to the LG Economic Research Institute (LGERI), Korea under performed the average growth rate of 7.7 percent among Asian economies this year.
Japan is expected to register a 3.1 percent growth rate this year.

``The main culprit of the economic slowdown is the stagnant domestic consumption the country has suffered for more than two years. No signs of recovery are in sight yet,’’ Shin Min-yong, a LGERI economist said.

Of the Asian economies, China’s growth rate will be 9.3 percent, followed by Singapore with 8.4 percent, India with 7.3 percent, Hong Kong 7 percent, Malaysia 6.9 percent, Thailand 6.8 percent and Taiwan 6.1 percent.

Moreover, the Korean growth rate is not only lower than the Asian average of 7.7 percent but also even lower than developing countries’ average of 6.8 percent in the region, according to the institute.

The growth rate in developed countries is projected to be 3.1 percent this year. Of them, the United States and the European Union (EU) are to grow by 4.2 percent and 1.8 percent, respectively.

The institute predicted that Asia will see its growth rate drop to 6.9 percent next year. But the Korean economy will grow by 3.8 percent, far lower than China’s 8 percent, India’s 6.2 percent and Thailand’s 5.7 percent, it said.

The Bank of Korea and the Korea Development Institute predicted the Korean economy would grow by around 4 percent and the Samsung Economic Research Institute put the rate at 3.7 percent.

``In the second half of next year, however, chances are the Korean economy would turn around. The number of credit delinquents would be reduced and the won appreciation would contain consumer prices to help boost domestic consumption,’’ Shin said.

godamon@koreatimes.co.kr