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KDI “Expected economic slowdown and delayed economic recovery
“Annual private consumption this year -4.6%, export forecast -4.2%”
The government prepares additional economic measures such as employment and investment
The Korea Development Institute KDI, a national research institute, predicted that our economy will grow negatively by -1.1% this year.
Following the Bank of Korea, KDI has also downgraded its economic prospects and the government has decided to prepare additional economic countermeasures along with the fourth supplement to support the victims.
Reporter Oh In-seok about the report.
[기자]KDI diagnosed that as Corona 19 proliferates again over the current economic situation, the magnitude of the economic decline has increased and the possibility of delaying economic recovery has increased.
In particular, private consumption and exports are expected to contract significantly, adversely affecting the growth rate of our economy.
This year, private consumption is expected to decline by -4.6% and exports by -4.2%, respectively.
The number of employees is expected to decline by 150,000 per year as the job market contracts, mainly in the service industry.
KDI revised the forecast that our economic growth rate will revert to -1.1% this year.
This is 1.3 percentage points less than the 0.2% positive growth forecast in May.
Previously, the Bank of Korea projected growth of -1.3%, and the International Monetary Fund and the Organization for Economic Cooperation and Development OECD projected growth of -2%.
[정규철 / KDI 경제전망실장 : 저희가 생각하기에는 말씀드렸듯이 회복이 상당한 시간이 걸릴 것이다. 저희가 이번에 제시한 전망 상으로는 V자 회복은 아닌 것으로 이렇게 저희가 기본적으로 전망을 했습니다.]As a factor external to the country, he noted that the conflict between the United States and China could act as an additional negative factor in the Korean economy, which is highly dependent on exports.
KDI recommended that it is necessary to increase the efficiency of fiscal spending by focusing on protecting vulnerable groups that have been heavily affected by Corona 19.
To respond to the economic slowdown caused by the spread of Corona 19, the government decided to prepare additional economic countermeasures using reserves, along with the fourth supplement.
Vice Premier Hong Nam-ki said he will devise tailored support measures for vulnerable groups such as small business owners, and plan to adjust and complement measures to enhance economic vitality such as investment, exports and consumption for the economic rebound in the second half of the year.
Economic measures are expected to include employment support and investment revitalization measures.
YTN Oh Inseok[[email protected]]it is.
