ECONOMY GROWTH PREDICTION HIGHEST AMONG OECD MEMBERS

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The OECD has predicted the Korean economy will contract 0.8 percent this year. That's the highest estimated growth rate among 37 OECD member-states. Korea was also the first among the organization's members to have its economic outlook upgraded since the COVID-19 pandemic.

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​The OECD has upgraded South Korea's economic growth outlook after two months because of the recovery in consumption and investment. Private consumption has slightly increased in the nation, while total investment, including household, business and government spending, has posted surpluses. Despite the bleak outlook for the country's exports, the OECD says other factors were strong enough to make up for it.

[Soundbite] ANGEL GURRIA(SECRETARY GENERAL, OECD)

The fundamental reason for the rosy outlook is Korea's success in containing the spread of COVID-19. Citing Korea's "effective strategies to contain the spread of the virus," the organization said, "the Korean government limited the damage to the domestic economy" without imposing lockdowns on any city or region.

[Soundbite] ANGEL GURRIA(SECRETARY GENERAL, OECD)

However, the OECD made clear that decline in international trade amid the global recession stemming from the pandemic could undermine Korea's growth. The organization recommended that Korea increase support for low-income earners and job-seekers, and implement pro-active policies to promote the use of new technologies.

[Soundbite] VINCENT KOEN(HEAD OF COUNTRY STUDY DIVISION, OECD)

It's the fourth time that Korea received the highest growth forecast among OECD members since the country joined the bloc in 1996. The previous top forecasts were made in 1996, 1999 and 2002.