OECD expects Korean economy to grow 2.6% in 2017

OECD, 내년 한국 경제성장률 전망치 2.6% The OECD has slashed its 2017 growth outlook for Korea,... forecasting the economy will grow at an even slower pace next year... compared to this year. This... while the organization revised up its growth outlook for the world economy for 2017. Our Kim Min-ji tells us what uncertainties at home and abroad are casting a shadow over the Korean economy. The OECD has cut its growth projection for the Korean economy to 2-point-6 percent for next year. The outlook is down 0-point-4 percentage points from its earlier forecast in June. The move is in line with other financial institutions that have cut the country's growth forecast. For this year, the OECD maintained its projection at 2-point-7 percent. The Paris-based organization says while growth maintained a moderate pace this year,... driven by the government's multibillion U.S. dollar supplementary budget as well as a record low interest rate -- things may be different next year. This due to the recent political scandal that has stalled state affairs,... as well as the government's ongoing corporate restructuring drive,... that's taken a toll on the nation's manufacturing sector. On top of that, an anti-graft law that took effect in September and the termination of Samsung's flagship Galaxy Note 7 may likely continue to weigh on the economy going forward. Further stoking concerns,... are lingering uncertainties abroad -- including a possible interest rate hike in the U.S. and perhaps protectionism policies along with the new incoming Trump administration. The OECD called for well designed fiscal stimulus and effective structural reforms to reignite domestic demand and reverse decline in Korea's export performance,... and boost labor productivity. Moving to the broader picture.... the OECD left its projection for the global economy this year unchanged at 2-point-9 percent. However, next year's outlook was at 3-point-3 percent,... up 0-point-1 percentage points from its earlier forecast in September. The OECD said although the slump in global trade and investment was slowing down recovery,... a pick up in raw material prices and fiscal expansion in major economies would likely prop up growth. However, it pointed to expansion of protectionism policies,... China's slowing trade,... and potential market volatility,... as some of the downside factors. The OECD called for countries to increase public spending,... as well as structural reform coupled with macroeconomic policies in order to raise potential growth rate and breathe life into the global economy. Kim Min-ji, Arirang News. Visit ‘Arirang News’ Official Pages Facebook(NEWS): http://www.facebook.com/newsarirang Homepage: http://www.arirang.com Facebook: http://www.facebook.com/arirangtv Twitter: http://twitter.com/arirangworld Instagram: http://instagram.com/arirangworld