S&P Global: "Korea Has Been in Recession Since Before COVID-19... Employment Recovery May Take Years"

South Korea's Growth Rate This Year -0.9%, Forecasted 3.6% Next Year

[Asia Economy Reporter Kim Eunbyeol] S&P Global Ratings stated on the 15th, "Even without the COVID-19 pandemic, South Korea was facing economic recession and low employment issues," adding, "It may take several years to recover going forward."

On the same day, S&P Global Ratings held a seminar titled 'Credit Ratings in the Post-COVID-19 Era' and projected South Korea's growth rate for this year at -0.9% and 3.6% for next year, expressing these views.

S&P Global Ratings said, "The Asia-Pacific region's response to COVID-19 was effective, and thanks to targeted and appropriate policies, the situation is much better than in other countries globally," adding, "In South Korea's case, looking ahead two years, it is expected to outperform (show growth rates higher than average)."

However, they added that the fact South Korea's economy was already showing signs of recession even without COVID-19 and that it may take a long time to recover employment are negative factors.

S&P Global Ratings stated, "While South Korea's employment has hit bottom and shows signs of recovery, it will take several years to fully recover, and consumption will continue to remain weak." They continued, "This is because wages themselves are weak, which leads to low inflation, forcing the central bank to maintain low interest rates inevitably." S&P Global Ratings forecast that the low interest rate trend will need to be maintained at least until 2023.

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