[서울신문] Lee Joo-yeol “This year’s growth rate will be higher than the forecast 3%”

“Even if inflation in the second quarter rises, it seems that it will not exceed the target of 2%
Even if there is temporary inflation, sustainability is low.”

Bank of Korea governor Joo-yeol Lee predicted that this year’s economic growth rate will “become beyond the previous forecast.” In addition, inflation may increase slightly in the second quarter, but it is predicted that it will not exceed 2%, which is the target level for price stabilization in the yearly.

Governor Lee said at a press conference in Seomyeon on the 23rd, “Although uncertainties remain in the future growth path, the domestic growth rate this year is expected to be higher than the previous forecast (3.0%).” As the basis, they pointed to the global economic recovery due to the expansion of macro policies of major countries and the expansion of vaccine distribution. In particular, in the US, as large-scale additional fiscal stimulus measures have been finalized and vaccinations are proceeding faster than planned, the central bank’s Federal Reserve Board’s forecast for this year’s growth has been revised up significantly from 4.2% to 6.5%. The BOK predicted that the increase in Korean exports and facility investment would be stronger than expected. In addition, the execution of the additional budget (additional budget) is expected to be a factor to further increase the growth rate.

Governor Lee predicted that in the second quarter, consumer inflation would rise to the high 1% level due to the base effect of the sharp drop in international oil prices last year, and it is expected to fluctuate from the mid to late 1% level in the second half as well. He said, “Although it is expected to be higher than the previous forecast (1.3%), it is still expected to fall below the 2% target level for price stabilization. In addition, he added, “If the corona infection situation quickly subsides and demand that has been suppressed so far erupts, inflation may temporarily increase, but it is unlikely that it will continue to rise.”

Even if the inflation rate and economic growth rate are higher than expected, the BOK plans to maintain an easing monetary policy for the time being.

Reporter Yoo Dae-geun [email protected]