OECD expects S. Korea's 2021 economic growth rate to be 4.0%
Updated: 2021-12-02 07:50:30 KST
The OECD has kept this year's economic growth outlook for South Korea at the same level despite lowering its forecasts for other countries including the U.S., China and Japan.
According to its Interim Economic Outlook on Wednesday, Seoul's economy is expected to grow by four-percent the same as September's forecast.
The OECD said South Korea's economy continues to recover fast thanks to eased social distancing measures from a swift vaccination rollout.
It said this is expected to boost consumption and employment, notably in the service sector.
The OECD also said exports are projected to remain strong through 2023, backed by items such as IT products, machinery and petrochemicals.
But warned that delivery delays from supply bottlenecks and shortages may hamper exports.
It added that business investment is set for solid growth, owing to government spending on key industries.
As for next year, Korea's economy is expected to grow by three-percent, up point-one percentage points from its previous forecast.
It said South Korea's economic growth is expected to be "stable" for the next two years.
For the year 2023, it forecasted the country's GDP to grow 2.7 percent.
The OECD advises the Korean government to financially support low-income households and businesses hit hard by the pandemic until recovery is well underway.
And added that the country needs to step up efforts to supply more housing to stabilize housing prices.
Bae Eun-ji, Arirang News.