OECD revises South Korea’s 2023 growth outlook

The Organisation for Economic Cooperation and Development (OECD) has revised its outlook on the 2023 gross domestic product (GDP) growth of South Korea to 2.2%. In particular, the OECD forecasted that the nation’s exports and private consumption would post slower-than-expected growth in 2023, citing several uncertainties. It said possible unfavourable factors surrounding the Korean economy include the prolonged war between Ukraine and Russia, China’s lockdown of major cities, and geopolitical risks on the Korean Peninsula. The OECD revised its projection on the 2023 export growth of Korea down to 3.2%, from its earlier suggestion of 4.1%. It also cut the outlook on private consumption from 2.9% to 2.4%. It recommended that South Korea continue to move towards a less accommodative monetary policy stance with a view to keep inflation expectations in check.