Crisis in Samsung sticks to economy of South Korea – Milenio.com

The central bank of South Korea adjusted down its forecast of economic growth for the next year, after considering the potential impact generated by the crisis of the smartphone Galaxy Note7.

WE RECOMMEND: What do I do if I have a Galaxy Note7 in Mexico?

The Bank of Korea (BOK, for its acronym in English) adjusted downward its forecast of economic growth for 2017, of the 2.9 percent predicted three months ago, to 2.8 percent.

This forecast is lower than that forecast by government that the local economy could reach the range of 3 per cent in 2017.

Even so, the central bank governor, Lee Ju-yeol, said that South Korea will not have difficulties to achieve an economic growth of 2.7 percent this year.

Lee also argued that the BOK took into account the impact of the withdrawal of the global market of the Galaxy Note7, the electronics giant south Korean Samsung Electronics Co., in its quarterly review of the growth forecasts.

With Samsung representing around 17 per cent of the gross domestic product of South Korea, is likely to have an impact at the national level, said the governor of the Bank of Korea, after a monthly meeting of monetary policy.

Samsung announced a withdrawal world of the smartphone Galaxy Note7 last month, after some of the mobile burn while being loaded.

The largest manufacturer of smartphones in the world decided, at the beginning of this week, ending production of the model, a few days after you resume the sales of its replacements, which continued to cause similar problems.

This move caused the price of the shares of Samsung were off in a tailspin, losing a day of nearly eight thousand million of dollars, and forced it to cut its profit estimate for the third quarter of the year.

shares of Samsung spin three days of fall and accumulate a loss of 21 thousand 400 million dollars in market value, something that can get worse the next sessions.

In turn, the board of monetary policy decided to keep this Thursday interest rates at the historic low of 1.25 percent.

The entity considered in a statement that exports, which make up 50 percent of GDP, still maintain their decline.

Still, he argues that the increase in domestic demand, particularly thanks to the construction sector, is partially compensating for this tendency.

he Stressed that the unemployment rose slightly (four tenths year-on-year in September to 3.6 percent), while the inflation also improved in the ninth month of the year to stand at 1.2 percent.

The BOK expects the south Korean economy would continue to show modest growth thanks to the gradual recovery of international trade and the effects of expansionary monetary policies in several regions, although it noted the high level of uncertainty that still faces.

” MCM ”