SK: 12% growth

Rakesh Bhandari bhandari at
Tue Nov 23 10:29:12 PST 1999

On Tue, 23 Nov 1999, Doug Henwood wrote:

> Financial Times - November 23, 1999
> SOUTH KOREA: End of economic crisis signalled
> By John Burton in Seoul
> The South Korean economy grew by 12.3 per cent in the third quarter,
> the fastest growth rate since 1988, in apparent confirmation that the
> nation's two-year economic crisis is over.

Coupled with the WSJ's story yesterday about the return to the black of some of Japan's biggest banks, it seems that your call about the end of the Asian crisis seems correct. But the WSJ did note the possibility of the stimulus from the huge (unprecented?) infusion of public monies into the banking system quickly dissipating. If that happens, then there goes South Korea's export market. Plus, if it's semiconductor sales that are kicking up xports, then South Korea has to look over its back to the substantial new capacity that Taiwan is bringing on in the next few years (reported in WSJ articles that I forwarded over the summer in a discussion with Dennis). Overcapacity still looms, I think. At any rate, few expected an outbreak of such severity last time. People may well be unprepared again.

Yours, Rakesh

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