Budget Policy Office forecasts 2.6% economic growth this year... 1.4% lower than last year

GDP Deflator 2.2%

[Image source=Yonhap News]

[Asia Economy Reporter Naju-seok] The National Assembly Budget Office forecasted South Korea's real Gross Domestic Product (GDP) growth rate for this year at 2.6%. This is 1.4 percentage points lower than last year's growth rate.

On the 30th, the office predicted that the country's economy would grow at this rate amid high domestic and international uncertainties. While private consumption is expected to show a recovery trend due to the easing of quarantine measures, factors such as the contraction of private consumption and investment in major countries including the United States due to global inflation, and the worsening of supply chains caused by the escalation of the Ukraine war were cited as causes.

Previously, South Korea's real GDP growth rate was -0.9% in 2020 and 4.0% last year.

The nominal growth rate, which reflects inflation in the real growth rate, is also expected to be limited to 4.8%. The GDP deflator, which is reflected in the nominal growth rate, was projected at 2.2%. Although the deflator is at a high level in domestic consumption and investment, it is expected to be slightly lower than last year due to the deterioration of trade conditions.

Meanwhile, the won-dollar exchange rate is expected to rise from last year's 1,145 won to reach 1,210 won this year.

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