Kyung Hee-Chong “Economy Experts Forecast Korea’s Growth Rate of 2.4% This Year…Recovering at a Moderate Speed”

(Data provided = Korea Employers' Association)
(Data provided = Korea Employers’ Association)

[뉴스웍스=장진혁 기자] The average of the economic and business administration professors at four-year universities nationwide in 2021 was 2.4%, somewhat lower than that of major domestic and foreign institutions.

The Korea Employers Association announced on the 10th that the average of the 2021 economic growth rate forecast of the respondents was 2.4% as a result of conducting a ‘2021 economic outlook and expert opinion survey on major economic issues’ targeting 214 economic experts (based on respondents).

Respondents were found to be more conservatively forecasting the Korean economic growth rate (2.4% on average) in 2021 than major domestic and foreign institutions. In fact, it is lower than that of major domestic and foreign institutions such as the Bank of Korea (3.0%), KDI (3.1%), and OECD (2.8%).

Regarding the future Korean economic situation, 55.1% of the respondents answered’Nike-type recovery (the economy recovers at a gentle pace)’. This was followed by 17.8% of the’L-shaped long-term recession’, 13.6% of the’V-shaped rebound (recovering rapidly after a temporary shock)’, and 10.7% of the’W-shaped double dip (the recovered economy again contracted)’.

Respondents thought that the economic shock caused by the Corona 19 crisis was similar to that of the IMF financial crisis. Accordingly, it was found that they are experiencing a 30% greater feeling than the global financial crisis.

Regarding the stance of the 21st National Assembly’s national fiscal management, 48.1% of respondents answered,’Financial expansion is necessary, but minimal.’ Next, 22.4% of’balanced finances need to be maintained’, 21.5% of’must expand more than recent trends’, and 7.9% of’a tighter finances are needed’ were confirmed in this order.

Regarding the direction of industrial restructuring, about half of the respondents, or 49.3%, answered that’the government should minimize intervention and leave it to the market.’ Gyeong-Chung explained, “Experts are presumed to recognize that “private-led” restructuring is necessary rather than “government-led” to improve the fundamental constitution of the industry beyond corporate revival.”

In addition,’as in the case of the recent aviation industry, the government should proactively support restructuring only for companies or industries that are in a limited situation’ (36.6%), and’as in the past IMF period, the government preemptively initiated restructuring to strengthen industrial competitiveness Some respondents replied that it should be guided by'(14.1%).

On the other hand, regarding the highest inheritance tax rate, 55.9% of respondents said,’A reduction is necessary to ensure the permanence of corporate management’, and 46.0% of the respondents answered that’A reduction is necessary to secure international competitiveness’ in the case of the highest corporate tax rate.

Regarding the impact of the US presidential election results on the Korean economy, 59.3% of respondents answered that’there is a difference by industry, but there will be no significant difference in the overall economic impact’. ‘Positive impact’ was surveyed at 36.0% and’negative impact’ at 4.7%.

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