Korean Economy Forecast to Grow 3.9% in 2021
The Korea Development Institute (KDI) forecast on May 20 that the South Korean economy would grow 0.2 percent this year, the slowest pace since 1998, due to a sharp drop in exports and private consumption amid the COVID-19 pandemic.
In November 2019, the state-run think tank projected the domestic economy to grow 2.3 percent in 2020.
The KDI forecast that the Korean economy would show solid growth of 3.9 percent in 2021.
The institute said in its Economic Outlook for the first half that economic growth may even swing to negative territory this year if the COVID-19 crisis continues. It said under a worst-case scenario, the Korean economy will contract 1.6 percent this year and begin to recover gradually next year.
Jung Suk-yee
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