OECD, Korea's economic growth rate this year

It is predicted that this year, the economic growth rate of Korea will be the highest among OECD member countries. It is interpreted as the background that even though the world has contracted due to Corona 19, in the case of Korea, GDP contraction was relatively small due to effective quarantine measures. On the 1st, the OECD released the “OECD Economic Outlook” containing these details. According to this, Korea's economic growth this year is forecast to be -1.1%. It ranks first among 37 OECD member countries and second only to China, which is the only G20 country to expect positive growth. By major country, the US is -3.7%, Japan -5.3%, and India -9.9%. The OECD explained, “Korea has the smallest gross domestic product (GDP) contraction this year among member countries due to effective quarantine measures.” In addition, he assessed that "the aggressive macro-policy response mitigates the impact of Corona 19, minimizing the decline in the growth rate, and the expansionary fiscal policy was appropriate for responding to the economy, leading to an increase in private consumption through large-scale relocation expenditures."

 

◇ Overall global economic growth rate -4.2%, uncertainty is expected to continue until treatment is supplied The OECD set the overall global economic growth rate this year to -4.2%, 0.3%p higher than the previous (-4.5%). However, next year's growth rate is 4.2%, compared to the previous (5%). After a severe recession in the second quarter of this year, economic activity resumed and each country's active policy responses will show a gradual recovery, but the OECD explains that the recovery is weakening due to re-proliferation and reinforcement of blockades in Europe. The OECD predicts that the global economy will continue to recover momentum over the next two years, but uncertainties such as the possibility of local re-proliferation will continue for a considerable period of time before vaccines or treatments become available at the end of next year. Meanwhile, it was evaluated that the speed of recovery by country will vary depending on the effectiveness of quarantine measures and the rapidity of securing vaccines. In particular, among the member countries, only five countries, including Korea, Norway, Turkey, Lithuania, and Sweden, were selected to recover to the level before the Corona 19 crisis. Even in the next year, 17 countries, which are more than a third of the member countries, are expected to fall short of the pre-crisis level.