Inevitable reverse growth of the Korean economy

The prospect of domestic and foreign professional organizations that negative growth will be inevitable as the Korean economy is hit by a direct hit by Corona 19 this year is following. The Organization for Economic Cooperation and Development (OECD) predicted the growth rate of Korea's gross domestic product (GDP) this year at -1.1% through an economic outlook report released on the 1st (local time). The OECD projected a GDP growth rate of 0.1 percentage points lower than -1.0% suggested in the economic outlook in September. This is a result of reflecting the negative impact of the re-proliferation of Corona 19. The Asian Development Bank (ADB) predicted the growth rate forecast for Korea this year at -0.9% in a report on ‘Replenishing the economic outlook in Asia for 2020’ released on the 10th. It is eye-catching that the company's estimate was raised by 0.1 percentage points from the September forecast -1.0%. ADB predicted that “the rate of GDP decline will be lower than originally expected, thanks to a partial recovery of private consumption and continuous fiscal and monetary support amid strong exports in the IT sector.” Domestic economic organizations are also looking very dark at the growth rate of the Korean economy this year.

 

The Korea Development Institute (KDI), a national research institute, predicted that Korea will record negative growth of -1.1% this year in its economic outlook report published last month. In particular, private consumption is expected to show a decrease of -4.3% this year as consumption activity contracted due to concerns about the corona19 infection. The Korea Economic Research Institute (Kyung-Yeon Han) predicted that this year's economic growth rate will increase by -1.4%. Despite the improvement in some indicators, such as exports, amidst the severe sluggishness of Korea at the level of the economic crisis, it is predicted that it will be difficult to escape from the sluggish negative growth as the 3rd pandemic of Corona 19, which was concerned, will become a reality. In such a gloomy economic outlook, concerns are raised that the metabolism of Korean companies is sluggish and the dynamics are weak