The Organisation for Economic Co-operation and Development (OECD) has raised its economic growth forecast for Korea this year to 2.8% in its report “2022 OECD Economic Survey of Korea” released on Sept. 19. (Korea.net database)
By Xu Aiying
The Organisation for Economic Co-operation and Development (OECD) expects the Korean economy this year to grow 2.8% thanks to recovery from the COVID-19 crisis and rebound in consumption.
The Ministry of Economy and Finance said the OECD on Sept. 19 released its report “2022 OECD Economic Survey of Korea” and raised its projection for Korea to 2.8% from its 2.7% estimate in June. It added that inflation will reach 5.2% this year, up from the earlier forecast of 4.8%.
The report said the Korean economy has effectively overcome the COVID-19 crisis and is expected to grow like this stemming from recovery in consumption due to eased quarantine regulations.
Public spending will gradually recover and investment will continue rising thanks to consistent demand for Korean products and planned corporate investment, the OECD added.
Korea’s growth next year will reach 2.2%, down from 2.5% predicted in June.
On potential risk factors, the OECD cited the prolonged war in Ukraine, China’s containment policy for COVID-19 and geopolitical factors surrounding the Korean Peninsula.
xuaiy@korea.kr
