SoKor President Yoon sees economic growth in 2024, beyond potential rate

South Korean President Yoon Suk Yeol expressed optimism about the economy in 2024, anticipating that it will surpass the potential growth rate after gaining momentum in the latter half of 2023.

In his speech to parliament regarding the proposed budget for the next year, Yoon also pledged to strengthen ties with the United States to enhance crisis management capabilities.

According to a report from Reuters, the President emphasized the government's vigilance in monitoring both economic and security conditions and its readiness to respond promptly. Yoon stated that the economic growth rate is expected to continue expanding in the second half of the year, exceeding the potential growth rate by the following year and outperforming major countries.

South Korea's potential growth rate, which represents the maximum sustainable economic growth without triggering inflation, is estimated to be around 2 percent.

The said country’s GDP grew by 0.6 percent in the July-September quarter, matching the prior quarter's pace and surpassing expectations.

However, economic growth is projected to slow to 1.2 percent in 2023 and recover to 2.1 percent in 2024, as per a Reuters survey. This differs from the government's forecasts of 1.4 percent growth for this year and 2.4 percent for the next.

Yoon also emphasized the importance of fiscal responsibility to maintain domestic inflation stability and preserve the country's credit ratings. Additionally, he underscored the significance of maintaining strong security alliances with the United States and other partners and promoting economic security cooperation with Washington to enhance crisis management capabilities.

South Korea also pledged to maintain mutually beneficial cooperation with China, its largest trading partner

.

(As of this writing: $1 = 1,348.7800 won)