According to the forecast of the Korean development Institute, a one percent decline in economic growth of China will slow down the economic growth of South Korea by 0.6%. Suffer the most are aviation, electronics, chemical industry and mechanical engineering.
TOKYO, 9 Nov. Ivan Zakharchenko. The economic slowdown in China may have a significant impact on the South Korean economy, which depends heavily on exports, was transferred on Monday from Seoul news Agency Renhap with reference to the forecast of the Korean development Institute.
“China is moving towards correcting the excessive investment and excessive productivity, which is accumulated with the global financial crisis of 2008 that could push the economy to even greater economic concern”, — stated in the forecast.
Just a one percent decline in economic growth of China will slow down the economic growth of South Korea by 0.6%, given the fact that in 2014 the trade turnover between the two countries amounted to $ 235.4 billion.
For comparison, the Yonhap cites evidence that with the United States second largest trading partner of South Korea’s total trade volume reached 115,6 billion.
The downturn of the economy in China will be detrimental to aviation, electronics, chemical industry and mechanical engineering in South Korea, according to the forecast of the Institute.
In the beginning of this month with a similar forecast made by the Bank of Korea (Bank of Korea). In a report submitted to the South Korean Parliament on 3 November, said that Korea can expect a negative impact on exports due to the reduction of imports to China of finished products.
China is the largest importer of South Korean goods. So, shipped to China in 2014 exceeded 25% of the total volume of South Korean exports.