Time now for an in-depth look at the market news this afternoon.
And for that, I'm joined on the line by Dr. Kim Sei-wan, Professor of Economics at Ewha
Womans University.
Professor Kim, good afternoon.
Thank you for coming on today.
Thank you.
Officials from the IMF visiting Korea this month for their periodic review of the country's
economy and policies have concluded that the economy has recovered to the level it was
before the pandemic.
But the IMF is warning of possible stagflation, and in particular the increase in household
debt because of the surge in home prices.
Tell us
about
the IMF's review, Professor, and what you make
of it?
The IMF also said it's still projecting the Korean economy to grow this year by 3 percent.
The downturn we've seen in the first quarter this year, it said, will be termporary, and
that 3 percent figure will be made possible in part by the government's extra budget.
How do you see growth this year coming in, and what else do you see in
the IMF report?
Now to
the equity markets, Professor concern seems to be easing somewhat about the war in Ukraine.
On the S&P 500, all sectors closed higher except for energy.
Uncertainty there about oil and gas.
What's the story in the global markets?
Stocks here in Korea were higher too, also on the Ukraine conflict.
Most of the large-cap stocks were higher.
Automakers Hyundai and
Kia were both up about 2-and-a-half percent.
The exchange rate came down significantly today.
Tell us about the domestic market.
Finally, Professor, the yield curve on U.S. Treasuries has now inverted.
The yield on the two year rose briefly above the ten overnight.
This has in the past been a reliable indicator of a recession to come.
What do you make of the situation, Professor, and what impact
do
you see on the markets?