There have been growing concerns about Korea's economy... with exports and investment both falling in recent months.<br />A report from a private research institute suggests... that over the next four years, the economy's potential growth rate will fall to just 2-and-a-half percent.<br />Our Ko Roon-hee explains. <br />Korea's potential growth rate continues to drop...and the situation isn't likely to improve in the near future. <br />The potential growth rate indicates how much a country could grow, without triggering inflation, if it used all of its given resources.<br /><br />A report Sunday from the Korea Economic Research Institute sees Korea's potential growth rate falling to 2-point-5 percent from this year through 2022. <br />This is down from the previous period's figure of 2-point-7 percent. <br /><br />The institute points out that the figure decreased sharply after the Asian financial crisis of the 1990s and the global crisis a decade ago.<br /><br /> As for this year's grim figures, researchers point to a decrease in productivity on the supply side.<br />This means that local companies are investing less in facilities and R&D than they used to. <br /> <br />A separate report the same day from Hyundai Research Institute explained which industries are going through especially hard times in terms of facilities investment.<br /> The institute says... none of Korea's main manufacturing industries are experiencing continued growth. <br /><br /><br /> For instance, the auto industry is experiencing a slowdown in investment... in line with the first quarter's slower growth in production and shipment.<br />In electronics, production and shipment actually shrank,... also indicating a slump in investment.<br /><br /> To turn things around, analysts point to the importance of regulatory reform and a continued expansion of fiscal spending. <br />For the companies themselves, they recommend improving the competitiveness of export products and reaching out to new markets.<br />Ko Roon-hee, Arirang News. <br />
