LG Economic Research Institute predicts ``South Korea's economic growth rate will be 3.9% this year and 2.8% next year'' = South Korea

LG Economic Research Institute predicts ``Korea's economic growth rate will be 3.9% this year and 2.8% next year'' = South Korea (Image source: wowkorea)

South Korea's LG Economic Research Institute forecast that the Korean economy will grow less than 4% this year and will reach the high 2% range next year. In the report "2022 Domestic and International Economic Outlook" released by the research institute on the 12th, it predicted that Korea's economic growth rate would be 3.9% this year and 2.8% next year. The South Korean economic growth rate predicted by the Institute for the next fiscal year is lower than the International Monetary Fund (IMF)'s 3.3%, the Bank of Korea, the Korea Development Institute (KDI), and the Organization for Economic Co-operation and Development (OECD)'s 3.0%. A researcher at the research institute said, "The speed of growth in demand for overseas durable goods and non-face-to-face IT, which surged due to special demand due to the corona crisis, will slow down next year, and the growth trend led by exports will weaken." It is highly likely that growth will be low, around 10%,” he said. "With the emergence of a mutated virus, quarantine regulations will be resumed at any time, but the provision of crisis response subsidies due to quarantine regulations will disappear, and demand will gradually shift to the service sector," he said. It will greatly reduce the vitality of exports,” he added. Consumer prices in South Korea are expected to rise by 2.4% and 2.2% respectively this year and next year. He expected that next year's employment would be driven more by demand-related indicators than by supply. There is considerable room for employment to expand in the service sector, which has a large employment-inducing effect, such as restaurants, lodging, and wholesale and retail. However, with the limited expansion of face-to-face activities and a clear trend toward the introduction of drones, it has judged that it will be difficult for employment to recover to past levels within the next year. The research institute said, "In the case of the manufacturing, wholesale, and retail industries, the employment decline, which has already progressed, is expected to become more serious due to the slowdown in demand." A slightly lower figure of 280,000 was predicted. The global economic growth rate is expected to decline from 5.8% this year to 3.9% next year. The exchange rate of the won against the dollar will drop temporarily to the 1,160 won level in the first half of next year due to the weakening of uncertainty caused by the corona crisis, and will rise slightly in the second half of the year as the domestic growth rate slows and the austerity trend in major countries becomes full-scale. I predicted that it would be around 1170 won.

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