The Korean economy is facing increasing downside risks as the uptick in Covid-19 cases is delaying the recovery of private spending amid heightened uncertainty about the global economic recovery, a state-run think tank said Thursday.
Korea's economy is under pressure over growing headwinds as a recent spike in Covid-19 infections is likely to delay a recovery of domestic consumption, a state-run think tank said Tuesday.
The economic recovery could face a setback as Covid-19 case numbers rise and the Delta variant threatens the country, a government think tank warned.
The Korea Development Institute (KDI) raised its growth outlook for this year from 3.1 percent to 3.8 percent. However, a sluggish vaccine program and weakness in the domestic market continue to be major risks to robust growth.
The KDI says that in 2017 the debt of these companies was already 23.5 percent of GDP, the highest among the 33 member nations of the Organization of Economic Cooperation and Development (OECD), where the average that year was 12.8 percent.
The spike of Covid-19 that escalated in November and continues today has left a major scar on the domestic economy, according to the latest assessment by the state-owned think tank.
A sign on the door of a coin noraebang, or booth-type singing room, in downtown Seoul on Monday informs customers of a brief closure during December.
Only about 30 percent of the government's first emergency relief grants were used for consumer spending, the Korea Development Institute (KDI) reports.
The Korea Development Institute (KDI) on Wednesday lowered next year’s growth projection citing the resurgence of coronavirus pandemic in major countries including Europe. The KDI forecast the economy to expand 3.1 percent in 2021.
The Korea Development Institute lowered its estimate for economic growth again as the coronavirus crisis continues to depress consumer spending. The think tank forecast the economy to shrink 1.1 percent. In May, it projected a 0.2 percent growth.