The report analyzed the impact of the European fiscal crisis on Korea’s economy. Economic growth of 3.5% in 2013 is predicted if the European fiscal crisis is stabilized. (Standard scenario). Domestic economy will start to recover after early 2013.  Economic growth of 2.4% in 2013 is predicted if European fiscal crisis remains an issue. (Pessimistic scenario). Recession will continue until late 2013. For aggregate demand, as export demand has decreased relatively sharply due to weakening global economic growth, domestic demand showed sluggish performance reflecting uncertainties. The slowdown of the global economy will lead to lower demand for export, resulting in a projected 2.8% growth of exports in 2013.

Shin Hoosik, You Seungsun