South Korea's potential growth rate falls below 2% for the first time in history

``Korea's potential growth rate will fall below 2% for the first time this year, and will fall to 1.7% next year,'' the forecast revealed. Even if production factors such as labor and capital are utilized to the maximum, the growth rate remains at 1.
This means that it will be difficult to exceed the mid-to-late % level. The growth rate is being held down by factors such as low birthrates, an aging population, and poor structural reform, and unless the economy shows signs of overheating due to rising prices next year,
, is expected to have a lower potential growth rate than the G7 member United States for the first time in 24 years. The potential growth rate of the US economy, which is larger and more mature than South Korea, is expected to rebound from next year and reach 1.9%.
is expected. On the other hand, in South Korea, due to a decline in its potential growth rate, there are concerns about a prolonged period of low growth similar to that seen in Japan. “As the working population continues to decline rapidly due to low birthrates and an aging population,
Without investment and innovation, low growth is likely to be prolonged.