S. Korean economy to grow 3.1% next year, after shrinking 1.1% this year: KDI
- 3 years ago
KDI, 내년 韓 경제성장률 3.1%로 하향조정…10월 취업자 6개월 만에 최대폭 감소
A state-run think tank has downgraded South Korea's GDP growth forecast for next year to 3-point-1 percent, citing the risks posed by the global resurgence of COVID-19.
And employment in South Korea was down in October for the eighth month in a row compared to last year.
Kim Jae-hee with the details.
The Korea Development Institute has revised down South Korea's GDP growth forecast for 2021.
In its latest economic assessment report on Wednesday, the think tank forecast the economy would grow 3-point-1 percent next year, after shrinking 1-point-1 percent this year.
That three-point-1 percent forecast for next year is point-4 percentage points lower than the previous prediction back in September.
The KDI explained the economy has continued to contract, mainly in the service industry, due to growing downside risks stemming from the global resurgence of COVID-19.
"Uncertainty is rising with the recent resurgence of COVID-19 in the U.S. and Europe, along with partial lockdowns. Taking into account internal and external factors, South Korea's economic recovery is forecast to be slow and limited."
According to the KDI report, total consumption will likely rise just 3-point-3 percent next year.
Exports are expected to increase 3-point-1 percent in 2021 amid the gradual global economic recovery, and imports are forecast to rise 3-point-8 percent.
Meanwhile, the COVID-19 pandemic continues to leave a painful mark on South Korea's job market, with October seeing the sharpest drop in six months.
According to data from Statistics Korea on Wednesday, the number of people in employment last month was around 27 million, down some 421-thousand on-year.
This marks the sharpest decline since April.
The figure has been on a downward trend for 8 months in a row, which is the longest period of decline since 2009.
The KDI forecast that the unemployment rate in 2021 will likely be higher than this year.
An expert also warns that new jobs being created are limited to certain sectors only.
"The retail and service sectors are suffering due to the pandemic. Only jobs in the online shopping and delivery service industry are being created."
But the KDI added that the growth forecast could be revised, depending on the impact of U.S. economic stimulus plans and the speed that COVID-19 vaccines become available.
Kim Jae-hee, Arirang News.
A state-run think tank has downgraded South Korea's GDP growth forecast for next year to 3-point-1 percent, citing the risks posed by the global resurgence of COVID-19.
And employment in South Korea was down in October for the eighth month in a row compared to last year.
Kim Jae-hee with the details.
The Korea Development Institute has revised down South Korea's GDP growth forecast for 2021.
In its latest economic assessment report on Wednesday, the think tank forecast the economy would grow 3-point-1 percent next year, after shrinking 1-point-1 percent this year.
That three-point-1 percent forecast for next year is point-4 percentage points lower than the previous prediction back in September.
The KDI explained the economy has continued to contract, mainly in the service industry, due to growing downside risks stemming from the global resurgence of COVID-19.
"Uncertainty is rising with the recent resurgence of COVID-19 in the U.S. and Europe, along with partial lockdowns. Taking into account internal and external factors, South Korea's economic recovery is forecast to be slow and limited."
According to the KDI report, total consumption will likely rise just 3-point-3 percent next year.
Exports are expected to increase 3-point-1 percent in 2021 amid the gradual global economic recovery, and imports are forecast to rise 3-point-8 percent.
Meanwhile, the COVID-19 pandemic continues to leave a painful mark on South Korea's job market, with October seeing the sharpest drop in six months.
According to data from Statistics Korea on Wednesday, the number of people in employment last month was around 27 million, down some 421-thousand on-year.
This marks the sharpest decline since April.
The figure has been on a downward trend for 8 months in a row, which is the longest period of decline since 2009.
The KDI forecast that the unemployment rate in 2021 will likely be higher than this year.
An expert also warns that new jobs being created are limited to certain sectors only.
"The retail and service sectors are suffering due to the pandemic. Only jobs in the online shopping and delivery service industry are being created."
But the KDI added that the growth forecast could be revised, depending on the impact of U.S. economic stimulus plans and the speed that COVID-19 vaccines become available.
Kim Jae-hee, Arirang News.