The real domestic product growth rate in 2009 will be 3.7 which is 0.5% point lower than it was expected in 2008. The slowdown in the economic growth is mainly due to a decline in export affected by the spread of global financial crisis influencing on the real economy. A sharp falloff in facilities investment caused by liquidity squeeze in both foreign and domestic currencies would be another reason.

The growth rate of private consumption is expected to expand within narrow limit from 2.1% in 2008 to 2.9% in 2009. However, there was a sharp decline compared to 4.5% in 2007. Investment in construction will be rising from -0.6% to 2.3% owe to government’s stimulus package to cope with the business slowdown through some construction areas such as SOC investment, development of corporate town and new city. On the other hand, the growth rate of investment in equipment is expected to dampen further from 2.2% in 2008 to 1.0% in 2009. Export, the main driver of the economy, is expected to slowdown to 7.4% due to the slowdown in the world economy.

Nominal GDP growth rate in 2009 is expected to reach 6.5% which is 0.1% point lower than that of 2008 estimated by NABO. This estimate for nominal GDP growth is divided into the real economic growth rate of 3.7% and the GDP deflator inflation of 2.8%.