The tensions of the president of the United States, Donald Trump, are not only a wind against South Korea, but “bad for all,” said Bank of Korea, Rhee Chang Yong.
“I really hope that this commercial tension is dissipated, because it is bad for everyone,” said Bank of Korea, Rhee Chang Yong, Wednesday night.
Speaking to CNBC at the FMI-World Bank spring meetings, Rhee said commercial tensions have caused winds against the South Korean economy, and that the downward risk for economic growth has.
“They will see us directly affected by US rates [and] Also indirectly for their tariffs to other countries, for example, the production of semiconductors in Vietnam, the production of cars and electronic in Mexico and our production of batteries in Canada. “
Rhee’s comments occurred one day before the Gross Domestic Product of South Korea was first contracted from the fourth quarter of 2020, with early figures that reveal that the GDP of the country was reduced 0.1% year after year in its first QUTER.
The launch of GDP also occurs when a South team is directed to the United States for commercial conversations, with the interim president they have Duck-Soo saying that he waits with the United States that allane the way for a result that will be both parties.
The Ministry of Commerce, Industry and Energy of South Korea said Thursday that the agenda of the meeting with the United States has not yet been final.
The governor of the Central Bank said that the country’s growth would be affected due to political instability in the first quarter, but expressed the hope that uncertainty will be “behind us” after the presidential elections of South Korea on June 3.
The political trial judgments of former President Yoon Suk Yeol and Prime Minister have Duck-Sooo extended in the first quarter, with the Constitutional Court hitting Han’s accusation in March and restoring him as an interim president, eliminating Yoon from office on April 4.
Earlier this month, the Korean bank maintained its reference policy rate by 2.75% at its April meeting, saying that “it is necessary to remain cautious about the impact of greater volatility of the exchange rate.”
Trump’s “Liberation Day” ads at midnight on April 3 led to South Korea winning cervical whip in the following days.
When asked why the Central Bank did not consider a preventive cut to underpin’s growth, Rhee attributed the decision to change currency volatility, and added that the bank, although it is better to maintain the rate and examine the incoming data before moving.
“If I do an analogy, now we are that you are entering a dark tunnel, and then, in that case, it is better to reduce the speed a bit, until the eye [adapts]. “