Uncertainty over South Korean economy: central bank
South Korea's economy faces "considerable" uncertainty next year following North Korea's artillery attack and due to the eurozone's debt problems, the central bank chief said Monday.
Bank of Korea governor Kim Choong-Soo also cited price instability in China and the direction of US monetary policy after the Federal Reserve's second round of quantitative easing.
"To respond to an increase in the level of uncertainty of the external environment, a policy mix should be devised that emphasises the twin growth of domestic demand and exports," Kim said in a statement at a press conference.
The central bank forecasts that next year's growth will ease to 4.5 percent from the 6.1 percent predicted for this year.
Kim said the domestic economy "will stay on a solid growth track" in 2011. But he said great care must be taken to avoid an "enfeebling influence" from eurozone problems, Chinese inflation and the US Fed's monetary policy.
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