Bloomberg "Korea to have -0.1% growth this year... Will show the fastest recovery"

[Asia Economy Reporter Naju-seok] A report has emerged predicting that the South Korean economy will experience a negative (-) 0.1% growth this year due to the novel coronavirus infection (COVID-19). Despite the significant decline in growth rates among major countries caused by COVID-19, South Korea's level was relatively favorable.

According to a report from Bloomberg Economics (BE), the economic research institute under Bloomberg, released on the 10th, South Korea's economic growth forecast was revised downward from the previous 2.3% to -2.4%, resulting in a lowered growth rate of -0.1%. Although the growth forecast turned negative, the situation was comparatively better than other countries expected to experience a sharp decline in growth rates.

Among the growth forecasts of 31 countries, South Korea recorded the third highest growth rate (-0.1%) following China (2%) and Indonesia (0.8%). The United States (2.0%▶-6.4%) and the Eurozone (0.9%▶-8.1%) are among those expected to see significant drops in growth rates.

The downward adjustment of -2.4%, which is lower than initially expected, is the smallest except for Hong Kong (-0.4%▶-2.0%).

As countries imposed movement restrictions and other measures due to COVID-19, causing economic shocks, South Korea's containment of COVID-19 and continuation of economic activities played a major role.

Earlier, the International Monetary Fund (IMF) also predicted South Korea's economic growth rate at -1.2% in its G20 economic outlook report, ranking fourth highest among G20 countries.

Bloomberg Economics expects South Korea and Germany to recover their economic growth faster than other countries. They introduced that "countries with strong healthcare systems, efficient governments, and sufficient fiscal capacity are positioned to quickly return to growth."

This content was produced with the assistance of AI translation services.