What has happened and what will happen in 2013?

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– written by Kim Mun-jung

Since we are in the second half of 2013, people are wondering what the first half was like economically and what is expected in the upcoming future. Let me brief you on how the experts predict the future economy might be.

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2012 was a tough year for many including the continent of Europe which had several countries going bankrupt. Japan went back to recession with negative growth. Since the beginning of 2013, experts had several predictions that were comparatively more positive. Many believed that the US will gradually recover while European growth staying weak.

In the next half of 2013, the Korea Economic Daily expects the growth of BRICs (Brazil, Russia, India, China) to be reduced which means the growth momentum has not changed since the economic mortgage crisis in 2008. It is also expected that the fast developing nations’ bonds such as the Brazil national loan bond will stay low in the next few years which instead will have more expenditure in developed countries.

Especially in China, many experts expect the economic bubble to burst in the upcoming years considering the unstable and yet unbelievable monetary growth it experienced in the last decade. Just like how the economic bubble burst happened in Latin American in the 1980s and Southeast Asia in the 1990s, China’s economy also is expected to follow a similar path.

For Korea, investment has fallen from the previous year even in strong industries such as ship building and iron mining. Some are even suspecting that the Korean economy and finance markets are following Japan’s model which has unstable housing prices with increasing foreign purchases.

Economic predictions are not always correct but it is good to know the big picture of what the next stage of this year will be like, isn’t it?

Always here to inform,

Frank

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