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Updated with additional information
The Bank of Korea on Thursday expected the economy to perform beyond its growth potential of 3.0 percent for two years in the aftermath of the Covid-19 recession, projecting the fastest gain of 4.0 percent in more than a decade this year on strong rebound across the globe.
The BOK yanked up its estimate for GDP growth for this year to 4.0 percent from 3.0 percent forecast in February and to 3.0 percent from 2.5 percent for next year to reflect faster recovery in global demand, two years of record fiscal and monetary stimuli, and normalization in the economies through vaccination progress.
Under the scenario, Asia’s fourth largest economy would be performing its best in 11 years this year after suffering the deepest contraction of 1.0 percent since 1997-1998 financial crisis last year and within its growth potential of 3.0 percent for two straight year.
Also reflecting rapid rise in international commodity prices and demand, the bank raised inflation estimate to 1.8 percent from 1.3 percent in February for this year and 1.4 percent for next year.
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
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