Nomura "Korea's Economic Growth Expected to Contract in Q3"

[Asia Economy Reporter Changhwan Lee] There is a forecast that South Korea's economic growth rate will record a negative figure in the third quarter of this year.

On the 4th, Bloomberg reported that Japanese investment bank (IB) Nomura projected in a report that South Korea, along with the United States, the Eurozone (19 countries using the euro), the United Kingdom, Japan, Australia, and Canada, will enter a recession within 12 months.

Nomura expressed concerns that in countries such as South Korea, Australia, and Canada, if the central bank's base interest rate hikes trigger a collapse in the housing market, the recession could be more severe than expected.

Among them, South Korea is expected to suffer an early severe impact, with the growth rate falling to -2.2% in the third quarter.

The United States is expected to experience a shallow but prolonged recession over five quarters starting from the fourth quarter of this year. Europe is predicted to face a much more severe recession if Russia completely cuts off natural gas supplies.

Nomura forecasted the economic growth rates for both the United States and the Eurozone to be -1% next year.