[2020 National Audit] Lee Ju-yeol "US Potential Growth Rate Increase, Corporate Productivity Rises Due to Deregulation"

[Asia Economy Reporter Kim Eun-byeol] Lee Ju-yeol, Governor of the Bank of Korea, attended the National Assembly's Planning and Finance Committee audit on the 16th and stated, "South Korea's current potential growth rate is in the 2% range," adding, "The main reason for the increase in the United States' potential growth rate is the deregulation that enhanced corporate productivity."

At the audit, Governor Lee said, "It is difficult to make definitive statements as many factors affect changes in the potential growth rate, but general research results indicate that the rise in the U.S. potential growth rate is due to increased productivity resulting from support for various creative activities by companies."

Currently, the Bank of Korea is in the process of re-estimating the potential growth rate to reflect economic structural changes caused by the COVID-19 pandemic. Before the COVID-19 outbreak, South Korea's potential growth rate was estimated at 2.5%.

The Bank of Korea cited the following as causes for the decline in South Korea's growth rate since the financial crisis: ▲population aging ▲investment sluggishness due to increased uncertainty ▲maturation of key industries.

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