Economic Growth Outlook

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The OECD has downgraded Korea's economic growth outlook for next year to below the three-percent mark. Here’s more on what this means for the Korean economy.

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In its "Economic Outlook" report issued on November 28, the OECD has downgraded Korea's economic growth outlook for next year to 2.6 percent. As such, the OECD's 2017 economic outlook for South Korea has been cut one percentage point from its 3.6-percent forecast made a year ago. The OECD cited the high possibility of a delay in global trade recovery, problems in the mobile phone industry, the political uncertainty in Korea and the repercussions of corporate restructuring and the anti-graft law for its adjustment. It also added that the Korean government must implement expansionary macroeconomic policies and structural reforms to support the country's economic growth. The OECD has predicted that the Korean economy would expand 2.7 percent this year in line with its forecast made back in June. It added that in 2018 the Korean economy will likely grow three percent on the projected global trade recovery. The OECD expects the global economy to expand 2.9 percent this year and 3.3 percent next year, up 0.4 percentage points from 2016.