OECD Lowers Korea’s Economic Growth Rate to 1.5% in Latest Forecast

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The Organization for Economic Cooperation and Development (OECD) lowered Korea’s economic growth rate again this year to 1.5%.

We have been continuously adjusting downwards since December 2021, citing sluggish private investment and declining exports as the reasons.

Reporter Yang So-yeon reports.

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The Organization for Economic Cooperation and Development (OECD) predicted that the Korean economy will grow at 1.5% this year.

It was lowered by 0.1 percentage point from the 1.6% suggested three months ago.

Although private consumption increased due to the gradual recovery of daily life following the endemic, it was diagnosed that this was due to low private investment due to high interest rates and the sluggish housing market, and a decrease in exports, especially for semiconductors, due to slowing global demand such as China.

Previously, the Bank of Korea presented a 1.4% growth rate last month, lower than the OECD forecast.

The OECD also lowered Korea’s next year’s growth rate from 2.3% to 2.1%, which is darker than the projections of the Bank of Korea and the IMF.

However, next year, it is expected that the effect of resuming Chinese economic activities will be felt and the growth rate will recover from this year as exports rebound.

Meanwhile, the inflation rate was predicted to be 3.4%, down 0.2 percentage points from the previous forecast.

The OECD has revised up the global economic growth rate this year to 2.7%, 0.1% higher than the March forecast, optimistically than the 2.1% growth rate previously suggested by the World Bank.

This is Yang So-yeon from MBC News.