Korea narrows current account surplus gap with Taiwan amid chip boom
Korea is rapidly closing the gap with Taiwan in its current account surplus surplus as a share of gross domestic product, with some global investment banks expecting Korea to overtake Taiwan this year, analysts said Sunday. According to data from the Korea Center for International Finance, the average forecast from eight foreign investment banks for Korea's current account surplus as a share of…
Korea is rapidly narrowing the gap in its current account surplus with Taiwan, according to forecasts from leading global investment banks. The Korea Center for International Finance reported that the average projection for Korea's current account surplus as a percentage of GDP increased to 16% in August from 14.7% in July. The top eight banks projecting this rise include Barclays, Bank of America Merrill Lynch, Citi, Goldman Sachs, JP Morgan, HSBC, Nomura, and UBS.
The upward trend is primarily driven by stronger expectations for semiconductor exports. Nomura predicts Korea's surplus could reach 19.7% of GDP, while Goldman Sachs anticipates 18.7% and Citi forecasts 18.2%. The current account surplus ratio, compared to a country's economy size, allows for cross-country economic comparisons. Seven banks anticipate Taiwan's current account surplus to average 20.6% of GDP this year.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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