The Bank of Korea has announced a downward revision of South Korea’s economic growth forecast for 2024, now estimating a growth rate of 2.3%. This is a decrease from the previous forecast of 2.5%, reflecting ongoing global economic uncertainties and domestic conditions. The adjustments come as the nation continues to grapple with rising inflation and stagnant export growth, particularly in key industries such as semiconductors. The central bank’s governor, Rhee Chang-yong, emphasized the need for continued monitoring of external factors, including the geopolitical situation in Northeast Asia and fluctuations in global demand. ‘We need to remain vigilant against the uncertainties that may impact our recovery,’ said Rhee. Additionally, inflation is projected to rise to 3.0% in 2024, up from earlier estimates of 2.7%, raising concerns about purchasing power and consumer spending. The South Korean government has responded with various stimulus measures aimed at bolstering economic stability and maintaining growth momentum despite the prevailing challenges. Experts warn that the situation could become more precarious if global economic conditions deteriorate further, stressing the importance of proactive policy interventions.
South Korea’s Economic Growth Estimates Adjusted Amid Global Challenges
