▪ The National Assembly Budget Office forecasts that, from 2023 to 2027, the Korean economy will experience an average annual growth rate of 2.2%.
▪ Between 2023 and 2027, the Korean economy is anticipated to see significant growth contributions from both the private sector (on the demand side) and other productivity2) (on the supply side).
▪ There is a risk of economic growth deceleration considering factors such as the trajectory of growth, supply and demand dynamics, etc.
▪ Investigate the potential decline in the connection between fiscal spending (consolidated fiscal balance) and government demand (national accounts) during policy execution
▪ Consider combining monetary and fiscal policies to address the economic slowdown and promote sustained growth
▪ Sustain the time consistency of policies
▪ To promote sustainable growth in the Korean economy, exploring policy options that increase government intervention effectiveness is crucial.