OECD remains S. Korea's economic growth estimate for 2018 at 2.7%
  • 5 years ago
The OECD has held South Korea's economic growth estimate for 2018 steady at two-point-seven percent,... unchanged from its previous projection a couple of months ago.
It advised Seoul to keep an eye on the speed of its minimum wage hikes.
Kim Hyo-sun tells us more.
The South Korean economy is expected to achieve 2-point-7 percent growth this year,... the same pace predicted by the OECD in September.
According to the OECD report published on Wednesday,... Asia's fourth largest economy is expected to grow 2-point-8 percent next year.
It adds that Seoul must continue to carry out its income-led growth strategy together with economic reform.
The report also says hikes in the minimum wage should be moderated to avoid a negative impact on the country's employment level.
In the fiscal sector,... South Korea was advised to devise a long-term fiscal policy to get itself ready for an aging society.
As for South Korea's monetary policy,... the OECD highlighted the need to normalize its monetary policy,... considering the nation's low inflation and financial risks like household debt.
The OECD pointed to improved relations with North Korea as a major positive,... while explaining that global trade protectionism remains a concern for Seoul.
The organization forecasts the global economy to grow 3-point-7 percent this year,... unchanged from its forecast made three months ago.
It downgraded next year's forecast for global growth to 3-point-5 percent.
Kim Hyo-sun, Arirang News.
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