The longer the political crisis in Korea drags on, the worse the economic consequences will be. Consumer spending is likely to be affected and there will also be disruption if the country’s powerful trade unions press ahead with their threats of mass industrial action. Pressure is likely to grow on the central bank to cut interest rates. The political turmoil makes us more confident in our view that the Bank of Korea will cut rates at its next meeting in January.
We will be holding an online briefing on Thursday 12th December to discuss and take your questions on what Donald Trump’s return to the White House means for emerging markets. Register for the event here.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services