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MNI BRIEF: KDI Warns On Downside Risks For S Korea Economy

TOKYO (MNI)

Downside risks are increasing for South Korea's economy as global conditions worsen in the wake of lockdowns in major European economies in recent weeks, the Korea Development Institute warned Monday.

"Despite a modest recovery in the manufacturing economy, the Korean economy shows a continued contraction, mainly in the service industry, and downside risks are high over accelerating Covid-19 (infections) in Europe," KDI said in its November monthly economic trends report.

To date, durable goods had seen a good recovery, KDI noted, but said the lockdowns in Europe could lead to a slowdown in global trade, implying a pick-up in downside risk.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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