World Bank names Korea 'growth superstar' in report

Economy

World Bank names Korea 'growth superstar' in report

Published: 01 Aug. 2024, 22:30

SHIN HA-NEE
shin.hanee@joongang.co.kr

Korea's national flag, Taegeukgi, flutters in Songpa District in southern Seoul on March 1. [NEWS1]

The World Bank named Korea “the growth superstar,” presenting the country’s trajectory of economic growth as a model case for middle-income economies in its latest report.

The Washington-based financial institution released the report on Thursday, titled “World Development Report: Middle-income trap.”

In its annual publication, the World Bank focused on the “middle-income trap,” in which mid-sized economies struggle with growth stagnation potentially for decades and fail to achieve high-income status.

The report suggested that Korea's history of rapid economic growth is “required reading” for other mid-sized economies seeking for a breakthrough, saying that “it would be a miracle if today’s middle-income economies manage to do in 50 years what Korea did in just 25.”

The World Bank identified investment, infusion and innovation — or “the 3i strategy” — as pivotal drivers for mid-sized economies to expand into developed markets.

“Korea’s success may be the best support for the argument that sustaining high growth requires adding infusion to accelerations of investment, and then again augmenting the 2i [infusion and investment] mix with innovation policies,” the report said. It also mentioned the country's economic history, describing the country as “the standout economy — the growth superstar even.”

Korea’s gross national income per capita, which was less than $1,200 in the 1960s, came at $36,194 last year, outpacing Japan for the first time.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]