(Image: Kobizmedia / Korea Bizwire)
SEOUL, 02.12 (Korea Bizwire) — China’s reopening from COVID-19 restrictions and its economic recovery are expected to help boost South Korea’s economic growth and exports, which are highly linked to the neighboring country, a report showed on Sunday.
According to the report released by the Korea International Trade Association (KITA), global institutions have predicted that China’s economy will grow 5.1 percent year-on-year in 2023, up from 3 percent growth a year earlier.
Thanks to the reopening of its years-long zero-COVID-19 policy and Beijing’s stimulus packages, the world’s second-largest economy is expected to post year-on-year growth of 6.9 percent in the second quarter and 2.6 percent in the first quarter.
Should this forecast come true, robust growth in China’s economy is likely to add another 0.16 percentage point to South Korea’s economic growth and 0.55 percentage point to its exports this year, the report said.
The South Korean government expected Asia’s fourth-largest economy to grow around 1.6 percent in 2023, compared with a 2.6 percent increase in 2022.
Exports are expected to fall 4.5 percent year-on-year in 2023, compared with growth of 6.1 percent last year.
“South Korea must make the most of China’s reopening and address the Chinese domestic market in a way that overcomes sluggish exports,” the report said.
South Korea’s economy has been severely affected by fluctuations in China’s economy as the neighboring country is its largest trading partner.
Shipments to China reached US$155.8 billion in 2022, accounting for 22.8 percent of Korea’s total exports of US$683.8 billion.
(Yonhap)
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