S. Korea faces economic slowdown – BOK

By Nada Ali On Dec 19, 2024

South Korea’s economic growth rate is expected to drop to two per cent and could fall below one per cent by the late 2040s due to a lack of innovation and inefficient resource allocation, the central bank announced on Thursday.

According to an analysis by the Bank of Korea (BOK), the potential growth rate, which is the maximum growth an economy can achieve in a year without causing inflationary pressure, is projected to be about two per cent from 2024 to 2026.

The rate has been declining steadily, from around five per cent in the early 2000s to the mid-3 per cent range in the 2010s, and further down to the mid-2 per cent levels by 2020, according to the BOK.

Attribution: Reuters

Subediting: M. S. Salama

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