Analysts Forecast Reduction of South Korean Economy Growth by 0.15% Over MERS
luvsmiling, June 10, 2015, 8:33 a.m.
Morgan Stanley forecasts Korea's economic growth could drop 0.15 percentage point if the Middle East Respiratory Syndrome crisis continues for just a month due to shrinking private consumption.
According to the Korea Center for International Finance on Tuesday, Morgan Stanley predicted retail sales in June will fall 10 percent and restaurant sales 15 percent even if the MERS crisis ends within a month, while the domestic tourism industry will suffer around a 20-percent decline from June to July.
That would lead to a 0.15 percentage point decline in Korea's economic growth this year. If the MERS crisis drags on for three months, Korea's growth would drop up to 0.8 percentage point, the investment bank warned.