South Korean President Yoon Suk Yeol expressed his optimism about the country’s economic growth, stating that in 2024, it would exceed the potential growth rate. He anticipates this acceleration will occur in the second half of 2023. President Yoon’s declaration was made during a speech to the parliament, where he emphasized the importance of strengthening ties with the United States to enhance crisis management capabilities.
This economic projection by President Yoon is based on the government’s active monitoring of both economic and security conditions and its readiness to respond promptly to any challenges.
South Korean President Yoon Suk Yeol’s outlook on the country’s economic growth remains optimistic. He has stated that the pace of economic expansion, as previously forecasted, will continue to increase in the latter half of the year.
Moreover, President Yoon predicts that in the following year, South Korea’s economy will not only recover beyond the potential growth rate but also achieve a growth rate surpassing that of major nations.
The estimated potential growth rate for South Korea stands at approximately 2 percent, a threshold indicative of the maximum attainable economic expansion without incurring inflationary pressures, according to policymakers’ assessments.
Recent data from the Bank of Korea illustrates a promising economic landscape, with gross domestic product (GDP) registering a growth of 0.6 percent in the July-September quarter compared to the previous three months. This pace of growth mirrors the preceding quarter’s performance and outperforms the median expectation of a 0.5 percent rise, as forecasted in a Reuters survey.
Conversely, a Reuters survey conducted earlier in the month anticipates a slowdown in economic growth, forecasting a rate of 1.2 percent in 2023 compared to the 2.6 percent recorded in 2022. However, a recovery is expected in 2024, with a projected growth rate of 2.1 percent. These forecasts differ from the government’s projections, which estimate a growth rate of 1.4 percent for the current year and a subsequent increase to 2.4 percent in the following year.
In August, the government introduced its budget plan for the upcoming year, with the smallest increase in two decades, primarily attributed to weakened tax revenue due to the deceleration of economic growth.
The 2024 government expenditure plan, amounting to 656.9 trillion won ($487 billion), exceeds the 2023 budget by 2.8 percent. President Yoon reiterated its pivotal role in maintaining domestic inflation stability and upholding the nation’s international credit ratings.
Yoon emphasized his administration’s plans to maintain security ties with the United States and its allied nations. He also recognized the potential for economic security collaboration with Washington, enhancing South Korea’s capacity for effective crisis management. Furthermore, President Yoon assured continued cooperation with China, the nation’s largest trading partner, promoting mutual benefits for both countries.