OECD expects S. Korea to recover faster than average
South Korea's economy will likely post a faster-than-average recovery pace among the world's major economies with indicators pointing at signs of stabilization, a report showed Monday, Xinhua reported.
According to the report by the Organization for Economic Cooperation and Development (OECD), South Korea climbed 1.8 points in terms of the composite leading indicator (CLI), logging 99.8 in May.
The CLI is an indicator to measure industrial output, housing and financial market conditions, and the gross domestic product to forecast the economy six months ahead, whose reading below 100 refers to a contraction expected for the economy.
Although South Korea's posting still remained below 100, it posted the fourth-steepest growth in the composite leading indicator (CLI) among the 29 nations.
The OECD also predicted that the CLI index for South Korea may exceed the 100 point benchmark in June, indicating that the South Korean economy may kick-start in the second half of the year.
Reflecting growing optimistic views in and out of the country, the Seoul government recently revised its growth outlook for this year, upgrading it from the previous projection of minus 2 percent growth to a 1.5 percent contraction.