You are here

South Korea growth 'unstable', supported by construction, housing

Wednesday, September 21, 2016 - 14:29
1_39072338 - 14_07_2016 - SOUTHKOREA-ECONOMY_RATES.jpg
South Korea's economy continues to grow but the growth is "unstable" and propped up mainly by construction investment and activity in the real estate market, Bank of Korea board member Hahm Joon Ho said on Wednesday.

[SEOUL] South Korea's economy continues to grow but the growth is "unstable" and propped up mainly by construction investment and activity in the real estate market, Bank of Korea board member Hahm Joon Ho said on Wednesday.

Mr Hahm, in a speech at a media event at the central bank, also said the ratio of household debt to income is rising, spurring worries that debt could hurt the country's ability to have stable growth in the medium and long-term.

The board member added these risks to financial stability inside and outside the country pose "great difficulties" in making monetary policy.

Mr Hahm is one of seven BOK board members. The central bank next reviews policy on Oct 13, when it will also release revised economic forecasts.

REUTERS