OECD maintains Korea’s 2021 GDP forecast at 4%

SEJONG -- The Organization for Economic Cooperation and Development has maintained its outlook on the South Korean economy this year, while revising down its growth predictions for major countries.

In a report released Wednesday, the Paris-based organization maintained its earlier forecast in September of a 4 percent growth in gross domestic product for Korea this year.

“The Korean economy continues to recover following the COVID-19 shock, propelled by strong export growth, improving business investment and public support,” said the OECD.

It also said that “a gradual relaxation of distancing measures and supportive fiscal policy will boost private consumption and employment, notably in the service sector.”

In contrast, the OECD has revised down its GDP growth estimate for the US to 5.6 percent, from its earlier forecast of 6 percent.

It also lowered the outlook on Japan by 0.7 percentage point from its earlier estimate to 1.8 percent in projected growth, China by 0.4 percentage point to 8.1 percent, and the eurozone countries by 0.1 percentage point to 5.2 percent.

The organization also predicted that the Korean economy will expand 3 percent in 2022 and 2.7 percent in 2023.

By Kim Yon-se (kys@heraldcorp.com)