KDI, 내년 韓 경제성장률 3.1%로 하향조정…올해는 -1.1%<br /><br />A state-run think tank has downgraded South Korea's GDP growth forecast for 2021,... citing the growing risks posed by the global resurgence of COVID-19.<br />Kim Jae-hee has the details.<br />The Korea Development Institute has revised down South Korea's GDP growth forecast for 2021.<br />In its latest economic assessment report Wednesday, the think tank forecast the economy to grow 3-point-1 percent next year, after shrinking 1-point-1 percent this year.<br />Three-point-1 percent is point-4 percentage points lower than the previous forecast made in September.<br />The KDI explained the economy has continued to contract, mainly in the service industry, due to growing downside risks stemming from the global resurgence of COVID-19.<br />"Uncertainty is rising with the recent resurgence of COVID-19 in the U.S. and Europe, along with partial lockdowns. Taking into account internal and external factors, South Korea's economic recovery is forecast to be slow and limited."<br />According to the KDI report, total consumption will likely rise just 3-point-3 percent next year.<br />Exports are expected to increase 3-point-1 percent in 2021 amid the gradual recovery of the global economy, and imports are forecast to rise 3-point-8 percent.<br />South Korea's current account is forecast to post a surplus of 57-point-9 billion U.S. dollars next year, less than this year's, due to increased imports amid worsening trade conditions.<br />Consumer prices are expected to edge up point-7 percent next year, only slightly higher than this year, due to low inflation for the foreseeable future.<br />The number of jobs is expected to increase by only about 100-thousand next year, as the service sector continues to suffer, and the unemployment rate will likely be higher than this year.<br />An expert also notes that new jobs may be limited to certain sectors only.<br />"The retail and the service sector are suffering due to the pandemic. Only jobs in the online shopping and delivery service industry are being created."<br />Regarding the U.S. election, the KDI said presumptive president-elect Joe Biden's economic plans could face challenges with a solidly Republican Senate, and his policies would take time to implement so their impact would not be significant for 2021.<br />It also noted that, if COVID-19 vaccines are fully distributed before the end of 2021, the institute could revise up its growth forecast.<br />Kim Jae-hee, Arirang News.<br />
