Current Economic Woes Resemble 2008 Financial Crisis

The current economic situation in Korea resembles the financial crisis in 2008 in alarming ways, Korean economists warn. 

In a poll of 204 professors of economics and business administration by the Korea Enterprises Federation, more than 100 respondents said the current economic situation is similar to or more difficult than the financial crisis of 2008. 

They blamed global economic and political risks such as Russia's invasion of Ukraine, the U.S.-China cold war and skyrocketing energy prices. 

Most expect Korea's economic growth to fall below two percent next year and only get back on track after 2024. Their average projection for next year was 1.87 percent. 

Respondents also predicted that prices and interest rates will remain high for the time being. About half of them expected prices to peak in the first quarter next year. 

"Respondents expect that prices will continue to remain high amid a global reduction in oil output and the strong dollar," the federation said. 

Around 90 respondents said the benchmark interest rate will reach 3.5 percent, the outlook given by the Bank of Korea, but a quarter said it needs to rise even higher. The rate is currently three percent.