It is forecasted that the long-term economic shock in the aftermath of the Corona 19 may increase the national debt ratio to 50% of Korea's gross domestic product (GDP) next year.
In a report, Bloomberg Intelligence (BI), a research agency affiliated with Bloomberg, predicted that in the scenario of the global economic downturn following Corona 19, Korea's GDP will decrease by 1.4% this year and the fiscal deficit will increase further with additional stimulus measures.
In this case, the institute predicted that Korea's national debt-to-GDP ratio would deteriorate from about 37% last year to 46% this year.
In addition, the economy will grow 2.1% next year, but the government is expected to reach a 50% national debt ratio as it expands its policy.
However, in the basic scenario where the GDP decreases 0.1% this year, the national debt ratio is expected to record 44% this year, and the growth rate will recover to 3.3% next year.
The institute also predicted that, according to the government's modest fiscal expansion, Han Eun will cut the base rate from the current 0.75% per annum to 0.50% per annum within a few months.
"Korea's National Debt Ratio May Reach Corona Response 50% Next Year"
2020-05-17T00:25:06.950Z
It is forecasted that the long-term economic shock in the aftermath of the Corona 19 may increase the national debt-to-GDP ratio to 50% next year. In a report, Bloomberg Intelligence, a research firm affiliated with Bloomberg, predicted that in the scenario of the global recession following Corona 19, Korea's GDP will decrease by 1.4% this year and the fiscal deficit will increase further as additional stimulus.
Source: sbskr