JP Morgan "Korea's GDP Growth Rate Revised Up to 4.6%... Growth Exceeds Expectations"

[Asia Economy Reporter Oh Hyung-gil] Global investment bank (IB) JP Morgan on the 27th revised up South Korea's real Gross Domestic Product (GDP) growth forecast for this year from 4.1% to 4.6%.

JP Morgan explained, "South Korea's first-quarter growth rate of 1.6%, announced by the Bank of Korea, exceeded expectations," adding, "In the first quarter, both exports and domestic demand increased solidly, achieving broader-than-expected growth across demand and production activities."

However, it added, "The surprise performance in the first quarter may lead to a moderate growth trend in the second quarter," and "The first-quarter trade statistics suggest that the export growth rate may slow down in the second quarter."

JP Morgan also predicted, "If the situation regarding COVID-19 and vaccine distribution does not worsen, the Bank of Korea is expected to send hawkish (monetary tightening preference) signals in the fourth quarter of this year and proceed with substantial interest rate normalization in the first quarter of next year."

Earlier, the Bank of Korea announced the first-quarter real GDP growth rate (preliminary figure) and forecasted that if quarterly growth rates reach 0.7?0.8% this year, an annual growth rate of 4.0% would also be possible.