2023-11-29 10:14:07
The Organization for Economic Co-operation and Development (OECD) lowered Korea’s growth forecast for this year from 1.5% to 1.4%, but raised its forecast for next year’s growth from 2.1% to 2.3%.
However, the growth rate for 2025 was set at 2.1%, predicting that the growth rate will slow compared to next year.
The OECD explained that while rising interest rates and energy prices are putting a strain on private consumption and investment in the short term, exports are improving thanks to the recovery in demand for semiconductors.
In addition, it is expected that domestic demand will recover as downward factors on consumption and investment will ease from the second half of next year.
The OECD forecast this year’s inflation rate to be 3.6%, which is 0.2 percentage points higher than the previous forecast, and also raised its forecast for next year’s inflation rate by 0.1 percentage points from 2.6% to 2.7%.
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