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NABO Briefing

Title Vol. 109 Economic Outlook for 2021 (English edition)

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The Korean economy is expected to grow by 3.1% by virtue of export and capital investment. Export is forecasted to be in good condition thanks to increased overseas demand following the global economic recovery, and capital investment is also predicted to expand. Private consumption is expected to escape the severe doldrums, but the recovery may be rather slow due to the current lack of improvement in household income. The number of people employed is forecasted to increase by 83,000 from the previous year's figure as manufacturing and construction industries are reviving and jobs in in-person services are partially recovering. Consumer prices are predicted to rise by 1.3% because of the inflation pressure from both the supply and demand sides induced by an economic recovery and hike in raw material prices. The COVID-19 pandemic has caused a seismic change in both the domestic and foreign economic environments. Along with the Fourth Industrial Revolution,the pandemic accelerated the digital transformation by fostering a contactless economic environment. This highlights the importance of taking preemptive and proactive action to reform the industrial and labor markets as well as foster technological innovation with Korea's post-pandemic growth strategy.

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