Vice Minister of Economy: "Focusing All Efforts to Achieve Growth Rate in the Mid-to-High 3% Range"

Lee Eok-won, First Vice Minister of the Ministry of Economy and Finance, is delivering a keynote speech at the 14th Innovation Growth Strategy Review Meeting, the Korean New Deal Review Task Force, and the 10th Vice Minister Meeting on Price Relations held at the Government Seoul Office in Jongno-gu, Seoul on the 23rd. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Oh Hyung-gil] Lee Ok-won, First Vice Minister of Strategy and Finance, stated on the 27th, "We will concentrate all policy capabilities to ensure that South Korea's economic growth rate reaches the mid-to-high 3% range this year."

In an interview with Yonhap News TV on the same day, Vice Minister Lee commented on the government's forecast that South Korea's real Gross Domestic Product (GDP) will grow by 3.2% this year, saying, "Based on the current trends, the upward factors seem to be much greater than 3.2%."

He analyzed, "Looking at the preliminary indicators for exports and domestic demand in April, the recovery trend is accelerating," adding, "The global economy has now turned to an upturn cycle, and since Korean companies have strong export competitiveness, we will be able to seize this opportunity quickly."

He continued, "There is also a forecast that the United States, a major export destination, will accelerate its economy through additional stimulus measures, making South Korea the biggest beneficiary," and predicted, "As the growth trend continues, it will be higher than the initial forecast."

Regarding the first-quarter GDP growth rate (preliminary figure) of 1.6% quarter-on-quarter announced by the Bank of Korea on the same day, he evaluated, "Balanced growth across all sectors including exports, domestic demand, investment, and fiscal policy is a characteristic," and added, "Companies, households, and the government all worked together to achieve this three-pronged growth."

He further stated, "Growing faster than other countries, South Korea has recovered to pre-COVID-19 levels the fastest among the top 10 advanced economies," and added, "Compared to the IMF and global financial crises, the recovery has been rapid, demonstrating strong resilience."

When asked whether South Korea can maintain its position as the world's 10th largest economy this year, he replied, "The country behind us is Russia, but the gap is large," and said, "Extremely speaking, South Korea would have to have zero growth this year while Russia grows by 11% to overturn the ranking, so the possibility is low."

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