Wednesday, January 26, 2011

Is the Korean Economy Really Growing?: Reportedly, It Grew at 8-year High of 6.1%

The Bank of Korea announced on Wednesday that the Korean economy grew at an eight-year high of 6.1 percent last year. This is due to the Korean government’s heavy spending and record low interest rates.

The question remains: Is this growth sustainable?; Is it healthy?

There are many worrisome indicators regarding the current state of the Korean economy.

Food inflation is rife. The Korean middle class standard of living is getting lowered by inflated prices of their daily necessities.

Its debt at both national and household levels is mounting.

A stock market bubble is forming and it is bound to pop. Korea is also facing unemployment among the youth and internal RE bubble going.

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