U.S.-CHINA TRADE WAR CAUSES S. KOREA'S GROWTH RATE TO BE 0.4 PERCENTAGE POINTS LOWER THIS YEAR: BOK

We start over at the Bank of Korea...
The BOK chief has for the first time put a specific figure on the impact the U.S.-China trade war has had on the local economy... saying it is expected to have lowered growth by up to point-4 percentage points.
Our Hong Yoo has more.
The U.S.-China trade dispute has cost South Korea point-four percentage points of economic growth this year.
Lee Ju-yeol, the Governor of the Bank of Korea, said during a press conference in WASHINGTON on Friday local time, that half of the decrease was caused by a drop in exports due to tariffs imposed between Washington and Beijing.
He said the remaining half is due to a slowdown in investment and consumption because of the economic uncertainties caused by the trade spat.
Lee explained that South Korea cannot avoid the effects of the trade war as a large amount of its exports go to the U.S. and China.
In the first 20 days of October alone, South Korea saw a 19-point-5 percent decrease in exports on-year, with semiconductor exports to China falling 20 percent on-year.
The IMF also expects South Korea to suffer most from the trade dispute.
But the country's economic growth rate is expected to increase next year.
Lee said there are predictions that the worst has been avoided with the two economic superpowers reaching a phase one partial trade agreement,... and he added that the semiconductor business will also begin to recover from the middle of next year.
Regarding interest rate cuts, Lee said that they are being careful in deciding whether to implement an additional cut because the interest rate is already low.
He explained that it's very important for the central bank to have policy measures to counter a recession if it arrives.
Regarding the inflation rate, the Bank of Korea expects it to be at around zero percent for the next one or two months.
The low inflation rate has become a headache not just for the central bank but for the entire world to the point that it cannot be controlled through monetary policy.
Instead, a harmonious mix of fiscal and monetary policy is needed for a macroeconomic stability.
Hong Yoo, Arirang News.



Source: Arirang News
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China: China , officially the People's Republic of China , is a sovereign state located in East Asia. It is the world's most populous country, with a population of over 1.35billion. The PRC is a single-party state governed by the Communist Party, with its seat of government in the capital city of Beijing.[
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South Korea: South Korea , officially the Republic of Korea , is a country in East Asia, constituting the southern part of the Korean Peninsula. The name Korea is derived from Goryeo, a dynasty which ruled in the Middle Ages. It shares land borders with North Korea to the north, and oversea borders with China to
- South Korea Wikipedia
WASHINGTON:
Beijing: Beijing ), sometimes romanized as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world. The population as of 2012 was 20,693,000. The metropolis, located in northern China, is governed as a direct-controlled municipality under the national govern
Friday: Friday is the day between Thursday and Saturday. In countries adopting Monday-first conventions as recommended by the international standard ISO 8601, it is the fifth day of the week. It is the sixth day in countries that adopt a Sunday-first convention, as in the Abrahamic tradition. In other coun
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October: October is the tenth month of the year in the Julian and Gregorian Calendars and one of seven months with a length of 31 days. The eighth month in the old Roman calendar, October retained its name after January and February were inserted into the calendar that had originally been created by the Ro