S. Korea Upgrades GDP Outlook

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South Korea's economic growth outlook was upwardly revised to 4.6% for 2010 on rising demand for goods, the Bank of Korea said Friday. In July, the central bank had projected a 3.6% rise for the next year. But, the central bank's estimate remained below the 5% expansion estimated by the government on Thursday.

The central bank also forecast a 0.2% growth for 2009 compared to a 1.6% decline estimated earlier. The BoK said capital investment will probably surge 11.4% in 2010, reversing a 9.6% decline estimated for this year. At the same time, private consumption growth is seen at 0.3% this year and 3.6% in 2010.

Tim Condon, economist at ING said the restoration of a normal level of capacity utilization following its Lehman panic plunge has triggered an investment cycle, which will drive growth in 2010. "The uptick in machinery orders in September and October is evidence that the investment cycle has turned," said Condon.

The South Korean economic growth outlook was upwardly revised to 4.6% for 2010 on higher demand for goods, the Bank of Korea said Friday. (Market News Provided by RTTNews)