OECD forecast Korea's growth rate next year is '1.8%'... got it lower

<Anchor> The

OECD has drastically lowered its forecast for Korea's economic growth next year.

It predicted that the growth rate would stop at 1% and inflation would rise close to 4%, leading to a low-growth, high-price trend.

This is reporter Han Sang-woo.

<Reporter>

Korea's economic growth rate expected by the OECD next year was 1.8%, down 0.4 percentage points from last September's forecast.

As the global economy slowed down due to high prices and high interest rates, it was expected that the Korean economy, which is highly dependent on exports, would be adversely affected.

The OECD's forecast is the lowest among foreign institutions' economic growth forecasts, such as the International Monetary Fund of 2% and the Asian Development Bank of 2.3%.

However, it was seen as a positive factor that the economic situation of China, Korea's largest trading partner, will improve next year.

Due to the impact of this year's series of corona containment measures, China's economic growth rate is expected to stop at 3.3%, far below the target of 5.5%.

Next year, it was expected to grow by 4.6%, but it was expected that the situation would improve somewhat due to the change in corona policy and the impact of government support measures to induce business and real estate investment.

Korea's inflation rate is expected to reach 3.9% as public utility bills such as electricity, gas and water increase pressure.

It recommended that monetary policy should continue to be tightened to stabilize prices, but it was expected to raise interest rates by the first quarter of next year and maintain high interest rates for the time being.