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Korea to Be 9th Economy by 2025


clock03-10-2010, 08:25 PM
Yorum: #1
Staff Reporter



South Korea, the world’s 11th largest economy, will power the global economy as a key member of the ``Next Eleven’’ economies, something of the magnitude of the ``BRICs economies,’’ according to a recent report by Goldman Sachs, a U.S.-based investment banking and securities firm.



The ``Next Eleven’’ is the second term that the Goldman Sachs has coined to describe economies with high growth potential in the world, such as the ``BRICs'' economies encompassing Brazil, Russia, India and China.



The 11 countries include Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, the Philippines, Turkey and Vietnam.



The Goldman Sachs report said South Korea is ``standing out’’ among these countries.



Comparing 22 economies _ G7 members, BRICs and the Next Eleven, the report predicted Korea will grow to be the world’s ninth largest economy with its gross domestic production (GDP) expanding to $2.63 trillion won by 2025. Currently, the nation’s GDP is $680 billion and 11th in the world.



By 2025, the world’s top 10 economies will be the U.S., China, Japan, Germany, India, the U.K., France, Russia, South Korea and Italy, its forecast said.



In the ranking of per capita gross national product (GNP), South Korea will be ranked the third after the U.S. and Japan by 2025 among 22 countries, with its GNP per capita soaring to $52,000. By 2050, the nation’s GNP per capita will reach $81,000, the report said.



In the short-term, the Korean economy will face challenges of high interest rates and rising inflation. Secondly, the appreciation of Korean won against Japanese yen may hurt exports, which is Korea’s single largest drive for the growth amid the prolonged consumption slump.



But the Goldman Sachs report was confident in the long term, saying that Korea has a unique opportunity in Asia to prosper and assume a greater role in global financial affairs. The only question is whether its leaders will sense it and turn that potential into reality, it said.
clock07-07-2012, 06:18 PM
Yorum: #2
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