Korean economy relatively stable amid COVID-19
June 27, 2020
Global Korean Post
By Lee Hana
While the global economy continues to shrink significantly due to the COVID-19 pandemic, international financial organizations see the Korean economy as being relatively better off.
The International Monetary Fund (IMF) on June 24 in Washington projected that global GDP will contract 4.9% this year in its World Economic Outlook Update. The forecast for advanced economies fell to minus 8% and that for emerging markets and developing economies to minus 3%.
In a separate growth report for 30 countries released on its website, the IMF predicted minus 2.1% growth for Korea this year, placing the country at the top of the growth chart among other advanced economies. The projection for Korea saw the lowest drop from January, or right before the COVID-19 outbreak.
Moody’s on June 22 in New York projected growth of minus 4.6% for the Group of 20 (G20) economies, down from an estimate of minus 4.0% made in April.
Moody’s significantly downgraded its growth estimates for European countries severely affected by the pandemic, including the U.K., France and Italy, but maintained Korea’s at minus 0.5%. This places Korea a step behind China at 1% among G20 economies.
Moody’s also predicted Korea to be the lone G20 economy to have higher growth in next year’s fourth quarter than before the pandemic hit.
Meanwhile the European Commission on June 23 announced its European Innovation Scoreboard for 2020, in which Korea topped the list for the eighth straight year in global performance among 10 contenders. Receiving 134 points, the country showed strength in areas like applications for patents, trademarks and designs.
The Switzerland-based International Institute for Management Development on June 16 announced its World Competitiveness Yearbook rankings, raising Korea five spots from last year to 23rd among 63 countries.
In a news release, the Ministry of Economy and Finance said, “Along with efforts to strengthen national competitiveness over that time, our active quarantine efforts and a policy of rapid crisis response can be construed as playing a positive role despite the spread of the COVID-19 pandemic.”