Standard and Poor’s (S&P) on Nov. 6 announced that it kept Korea’s sovereign rating at “AA” and the country’s economic forecast at “stable.” The global ratings agency said the Korean economy has seen more solid growth than other high-income countries and is diversified in not being dependent on a certain industry or export market. S&P’s stable outlook also reflected the expectation that the geopolitical risk of the Korean Peninsula for the next two years will not escalate to the extent of hurting economic fundamentals.
Average GDP per capita was expected to grow from USD 31,800 this year to USD 35,000 by 2022, and the forecast rate of virtual GDP growth was 2.2%, higher than those for other high-income countries.
S&P, however, predicted low export growth for the country this year and said the trade row between Korea and Japan will worsen uncertainty and weaken investment sentiment. Korea since August 2016 has maintained the rating of “AA,” S&P’s third highest.