The Organization for Economic Cooperation and Development (OECD) predicted that the Korean economy will grow 3.3% this year. It was 0.5 percentage points higher than last year’s forecast (2.8%). Among the 20 major countries (G20), it predicted that the economies of seven countries, including Korea, will recover to the level before the crisis of the novel coronavirus infection (Corona 19).
0.5%P increase from last year’s forecast 2.8%
“The level before the corona crisis will recover”
The OECD released forecasts for economic growth rates in major countries this year and next year on the 9th. Korea’s growth rate forecast for this year was the third in the G20, after China (7.8%) and Turkey (5.9%).
Forecast of Korea’s economic growth rate in 2021. Graphic = Reporter Kim Young-ok [email protected]
The OECD stressed that financial aid in response to the Corona 19 crisis should focus on the victims. It can be seen as intellectually that the scope of the disaster subsidies that the government will provide should be narrowed. The OECD suggested that there is a need for structural reforms along with investments in the digital sector and policies to respond to climate change.
The OECD’s forecast for Korea’s growth rate is somewhat higher than that of other institutions. Earlier, the International Monetary Fund (IMF) predicted Korea’s economic growth rate of 3.1% this year. The government is forecasting a 3.2% growth and the Bank of Korea’s 3% growth. However, the OECD presented a forecast for Korea’s growth rate of 3.1% for next year, lowering it by 0.3 percentage points from the previous forecast (2.8%).
The world economy, which showed negative growth last year (-3.4%), will grow 5.6% this year, the OECD predicted. It increased 1.4 percentage points from the forecast (4.2%) released in December of last year. The OECD expects the US economy to grow by 6.5% this year. It was 3.3 percentage points higher than the previous forecast (3.2%). It is expected that the $1.9 trillion stimulus package promoted by the Joe Biden administration of the United States will accelerate the economic recovery.
Sejong = Reporter Seongbin Lim [email protected]
