S. Korea's state-run think tank lowers 2021 growth outlook to 3.1 pct
Source: Xinhua | 2020-11-12
South Korea's state-run economic think tank on Wednesday lowered its growth outlook for next year by 0.4 percentage points to 3.1 percent.
The Korea Development Institute (KDI) forecast that the South Korean economy would grow 3.1 percent in 2021. It was lower than an increase of 3.5 percent estimated two months earlier.
It was in line with the Organization for Economic Cooperation and Development (OECD)'s outlook, but the Bank of Korea (BOK) and the International Monetary Fund (IMF) expected the economy to rise 2.8 percent and 2.9 percent respectively next year.
The KDI forecast that economic fallout from the COVID-19 pandemic could last longer than estimated.
Private consumption was predicted to climb 2.4 percent next year after dropping 4.3 percent this year.
The KDI projected the consumer price index (CPI) to gain 0.7 percent in 2021 amid the low demand-side inflationary pressure, driven by the prolonged pandemic.
The think tank expected facility investment and investment in the construction sector to go up 4.7 percent and 2.0 percent each next year.
Export, which accounts for about half of the export-driven economy, was forecast to be up 3.1 percent next year. It was lower than a growth forecast of 3.4 percent estimated in September.
The number of jobs was predicted to rise 100,000 next year, and the unemployment rate was estimated at 4.1 percent.
The KDI forecast that the South Korean economy would contract 1.1 percent in 2020 due to the COVID-19 pandemic.
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