According to the International Monetary Fund (IMF) and government authorities on the 15th, the IMF has revised its fiscal review report published this month.
Monitor) predicts that South Korea's general government debt (D2) ratio to GDP will increase to 57.9% in 2028. This is a group of developed countries (Advanced
Economics) Among the 11 non-key currency countries, it is the second highest after Singapore (170.2%). General government debt is the national debt mainly used domestically (D1: central government and local government debt).
This is government debt that includes debts of prefectural government accounts and funds) and debts of non-profit public institutions. It is mainly used by the IMF and the Organization for Economic Co-operation and Development (OECD) to compare countries' debts.
Non-reserve currency countries are countries that do not hold one of the eight major reserve currencies, including the dollar, euro, and yen, among the 37 countries classified by the IMF as developed countries in this report. use euro
This includes 11 countries including Andorra, which is not part of the euro area, Sweden, Denmark, Iceland, New Zealand, and Norway.
The rate of increase in South Korea's debt ratio is considerably faster than among non-key currency countries. In particular, Moon Jae-in, who used expansionary fiscal policy,
The general government debt ratio increased rapidly under the current government, rising from 40.1% in 2017 to 53.8% in 2022, the end of his term, a whopping 13.7% increase in six years.
Buoyed by the speed of increase, South Korea's debt ratio is estimated to have reached 53.8% last year, exceeding the average of the remaining 10 non-key currency countries (53.1%) for the first time.
The IMF also predicted that the debt ratio would rise to 57.9% in 2028, the fastest rate among non-key currency countries, along with Hong Kong (3.6%).
However, Hong Kong's general government debt ratio will remain only 9.7% in 2028. Typically, non-base currency countries like South Korea have lower debt than reserve currency countries.
As demand for such things as rights is low, more attention must be paid to financial soundness management. Furthermore, their fiscal policy margins are smaller than those of key currency countries, making it impossible to compare debt ratios on the same line.
Even though South Korea's debt ratio is lower than that of the key currency countries such as the United States, the United Kingdom, Japan, and the G7, all of which are well above 100%, we must be even more cautious. IMF is 2
In 2028, the US is expected to record a debt ratio of 137.5%, and Japan is expected to record a debt ratio of 252.8%.
2023/10/15 14:06 KST
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