BOK: "If China's Growth Rate Drops by 1%P, Korea's Growth Rate Falls by 0.1~0.15%P"

"China's Economic Growth Slowdown Negatively Impacts Our Economy"
Transition to With Corona... 'Card Spending' Increases by 5% with 10% Rise in Outdoor Activities

[Asia Economy Reporter Jang Sehee] An analysis has emerged that if China's economic growth rate falls by 1 percentage point, South Korea's economic growth rate will decrease by 0.1 to 0.15 percentage points.

On the 25th, Kim Woong, Director of the Research Department at the Bank of Korea, stated at a press corps workshop held under the theme "Review of Major Issues in Our Economy Recently," "According to econometric model analysis, if China's economic growth rate decreases by 1 percentage point, the domestic growth rate is expected to decline by 0.1 to 0.15 percentage points."

According to China's National Bureau of Statistics on the 18th, China's third-quarter gross domestic product (GDP) growth rate recorded 4.9%. This figure falls short of the market expectations of 5.0 to 5.2%. The slowdown in China's growth rate is expected to be a negative factor for our economy as well. Director Kim added, "The slowdown in China's economic growth rate inevitably has a negative impact on our economy."

Despite the expansion of external risks such as the slowdown in China's growth rate and global inflation concerns, growth above the potential level is expected to continue.

Director Kim said, "The third quarter seems to have experienced a slight slowdown in growth due to the resurgence of COVID-19 and delays in resolving global supply bottlenecks," but he evaluated, "In the fourth quarter, with the easing of quarantine guidelines and the effects of supplementary budgets, the economy is expected to improve."

Meanwhile, it was forecasted that consumption activities will increase further with the transition to With COVID-19. According to the Bank of Korea, econometric analysis shows that if economic agents' external activities increase by about 10%, card spending in face-to-face service sectors increases by about 5%. In terms of amount, this corresponds to an average monthly scale of 1.2 trillion won.

This content was produced with the assistance of AI translation services.