November 15, 2012 11:13
Korea's annual average economic growth will fall to about 1 percent in 10 years' time, according to a global outlook by a U.S. think tank. In the outlook released Wednesday, the Conference Board forecast that Korea's economy will grow 2.4 percent a year on average from 2013 to 2018, which will then plummet to 1.2 percent between 2019 and 2025.
Korea ranks 46th among 55 countries surveyed in terms of their growth outlook for 2019-2025.
"Medium-term (2014-2018) and long-term (2019-2025) projections are based on a growth accounting model, looking at the contributions of labor, capital and total factor productivity to growth," the report says.
Meanwhile, the Bank of Korea projects Korea's growth outlook for this year and next at 2.4 percent and 3.2 percent.
The global economic outlook is not bright either. "The long-term global slowdown we project to 2025 will be driven largely by structural transformations in the emerging economies," the report concludes. "The structural 'speed limits' of their economies are likely to decline, bringing down global growth despite the recovery we expect in advanced economies after 2013."
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