Korea: Growth to pick up

Output growth was positive in the first quarter of 2009, following the severe contraction in late 2008. Nevertheless, the unemployment rate has risen significantly, inflation has decelerated and the current account surplus has increased sharply.

Output growth is projected to pick up further in line with the recovery in world trade, reaching a rate of 4.5% by late 2010.

As the economy strengthens, the growth of government spending should be scaled back to bring the budget back into balance, while pursuing tax reform to create a more growth-friendly system. The authorities should ensure that the negative impact of corporate restructuring on the financial sector remains limited, while pursuing structural reforms to sustain growth over the medium term.

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See also www.oecd.org/korea

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©OECD Observer No 274, July 2009

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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