The Asian Development Bank diagnosed Korea's high inflation and low growth in Asia as worse next year, and Korea's trade deficit is getting bigger under the strong dollar system.
ADB revised its forecast for April in its 'Asia Economic Outlook (ADO) Supplement' on the 21st, maintaining a growth rate of 2.6% for Korea next year and raising the inflation rate from 2% to 3%.
In China, the inflation rate for next year will remain at 2.0% and the growth rate will remain at 4.8%.
Taiwan's inflation rate rose from 1.6% to 2.0% while maintaining 3.0% growth next year, but Korea's upward rate is much higher.
India's growth rate for next year was slightly adjusted from 9.0% to 7.85%, and the inflation rate rose slightly from 5.0% to 5.8%.
For the average of 46 developing Asian countries, the growth rate for next year will be 5.2% from 5.3%, and the inflation rate will rise slightly from 3.1% to 3.5%, which is a marked difference from Korea's surge from 2.0% to 3.0%.
Korea's economic growth rate this year was lowered from 3% in April to 2.6%, and the consumer price inflation rate increased from 3.2% to 4.5%.
ADB revised the growth rate for Asian developing countries (excluding Japan, Australia and New Zealand) to 4.6% this year. This is down 0.6%p from the forecast announced in April (5.2%).
As the yen weakened, Japan's trade balance in the first half recorded a deficit of 7.92 trillion yen, a record high.
Korea's trade deficit due to the weak won was $8.12 billion for the 20th of July, larger than the $3.636 billion deficit in the same period last year.
The trade deficit accumulated from this year to the 20th of this month was $18.458 billion.
The Bank of Japan decided to maintain massive monetary easing at its monetary policy meeting on the 21st.
The Outlook Report released on this day raised the CPI (Consumer Price Index) year-on-year change from 1.9% in April 2022 to 2.3%. Yomiuri reported that it continued to support
Yomiuri said, “The Bank of Japan has set its price stabilization target above 2% for the first time in history, aiming to raise prices along with improving corporate profits and raising wages. However, growth in FY 2011 is expected to be in the range of 1.0-1.0% against the background of crude oil prices.”
The Wall Street Journal reported on the 21st that "the suffering of interest rates from high inflation has hardly begun."
“European Central Bank President Christine Lagarde will unveil its first rate hike this week to tackle price spikes, slowing economic growth and 9% eurozone inflation,” the Washington Post reported. It is expected that some will follow.”
In another article, The Washington Post wrote, "A soaring dollar could help the Fed fight inflation. The dollar hit a multi-decade high this week against major currencies, including the euro and Japanese yen, and is still rising." almost certain to do. As consumer prices rose 9.1% last year, the fastest rate since 1981, the Fed signaled that further rate hikes would begin on July 26.