The Organization for Economic Cooperation and Development (OECD) has lowered its forecast for Korea’s economic growth rate this year to the mid-1% range.
Although the projections for the growth rate of the world economy, including those of the United States and China, have been raised, Korea’s growth expectations have also been lowered.
The Ministry of Strategy and Finance announced that the OECD lowered its forecast for Korea’s economic growth this year from 1.8% to 1.6% by 0.2 percentage point through the announcement of the ‘Interim Economic Outlook’.
The OECD lowered its expectations for Korea’s growth rate at the time of its economic outlook in November last year, and then lowered its expectations again in the interim outlook.
This is the same as the growth rate forecast for this year presented by the Korean government and the Bank of Korea, and is lower than the 1.7% presented by the International Monetary Fund.
The global economic growth forecast for this year was 2.6%, up 0.4 percentage points from the previous forecast.
The growth rate forecasts for the United States rose from 0.5% to 1.5%, China from 4.6% to 5.3%, and Spain from 1.3% to 1.7%.
Among the G20 major 20 countries, the growth forecasts for this year were lowered for South Korea, which is 1.6%, and eight countries, including Japan, Turkey, and Argentina, which fell by 0.4 percentage points to 1.4%.
The OECD said, “The improved outlook for global economic conditions remains on a weak footing, and upside and downside risks have recently been balanced, but downside risks are still somewhat dominant.”
He also pointed out that ″As shown in the Silicon Valley Bank (SVB) crisis, sharp fluctuations in market interest rates and bond prices can expose financial companies’ business models to higher maturity risks.″
However, the global economy was expected to recover moderately from this year to next year, but the global economic growth rate next year was revised up to 2.9%, 0.2 percentage points higher than the previous forecast.
Korea’s growth rate for next year is expected to be 2.3%, up 0.4 percentage points from the previous forecast of 1.9%.
