The Bank of Korea maintained its real gross domestic product (GDP) growth forecast for this year at 4.0%, despite the fourth wave of COVID-19.
It is interpreted as considering the effects of fiscal policies such as strong exports, consumption recovery due to Corona (step-by-step recovery of daily life), and government subsidies.
However, in the case of consumer price inflation, we raised it to 2.3% to reflect the rise in crude oil and raw material prices, supply chain disruption, and increase in consumer demand.
In its revised economic outlook released today (25th), the BOK presented a real GDP growth rate of 4.0% this year.
This is the same as the forecast for August, and it means that the fourth wave of COVID-19 has continued for nearly five months since the beginning of July, but it is judged that there will be no significant impact on the economic recovery.
The annual consumer price inflation forecast was raised by 0.2 percentage points from 2.1% to 2.3% as expected.
This is the result of reflecting the consumer price inflation rate in October (compared to the same month of the previous year), which exceeded 3%, and the producer price, which has continued to rise for one year from November last year to the last month.
Next year's consumer price inflation rate was also raised by 0.5 percentage points from 1.5% to 2.0%.