OECD growth outlook dips to 2.7%The OECD on Thursday lowered this year’s economic growth outlook for Korea by 0.3 percentage points from its May forecast to 2.7 percent. It also lowered Korea’s outlook for next year to 2.8 percent, down 0.2 percentage points.
The revision was announced as global trade has become more uncertain with intensifying trade conflict between the United States and China.
U.S. President Trump imposed a 10-percent tariff on $200 billion worth of Chinese imported goods earlier this week that will go into effect on Sept. 24, with China responding with tariffs on $60 billion worth of U.S. goods that will be imposed on the same day.
The OECD, citing the intensifying trade conflict between the world’s two largest economies, has lowered the global growth from 3.8 percent to 3.7 percent.
However, the OECD said it expects Korea’s household income and consumption to improve due to government spending expected next year.
The government has raised next year’s budget to an all-time record of 429 trillion won ($382.3 billion).
BY LEE HO-JEONG [firstname.lastname@example.org]
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