OECD Adjustment
The Organization for Economic Co-operation and Development (OECD) made an upward adjustment on Korea’s economic growth forecast to 4.0 percent, up 0.2 percentage points, while trimming down expected economic growth rates of global and American economies.
According to the Ministry of Strategy and Finance (MOSF) on May 6, the OECD, through its “2014 Economic Outlook,” spiked 2014’s local economic growth forecast from 3.8 percent to 4.0 percent.
The global organization also added the same 0.2 percentage points in upgrading Korea’s 2015 growth forecast from 4.0 percent to 4.2 percent.
It is the OECD’s analysis that the local economy will gain momentum in its recovery on the back of its export boom.
The organization counted as a big growth factor Park Geun hye government’s 3-year economic innovation.
In the meantime, it cut down this year’s global and America’s economic growth forecasts.
The OECD shaved off its beginning of the year global and America’s growth forecasts of 3.6 percent and 2.9 percent to 3.4 percent and 2.6 percent, down 0.2 percentage point and 0.3 percentage point, respectively.
Also, the organization upgraded this year’s global trade growth forecast from last year’s 4.4 percent to 4.8 percent, but the next year’s forecast was lowered from 6.1 percent to 5.9 percent.