Q309 GDP: Not Quite As Rosy As It Appears

BMI View: We believe that the positive surprise in South Korea's Q309 headline real GDP growth rate of 2.9% q-o-q does little to mask the underlying weakness of final demand expenditure. With domestic demand likely to remain particularly weak, we caution that an early and/or aggressive monetary exit strategy by the Korean authorities would pose sizeable downside risks to our 2010 economic growth projection of 3.2%.

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