Lee: “A dramatic turnaround in the Korean economy’s fundamentals ... a first in about 40 years”

[Financial News] President Lee Jae-myung said on the 20th that the forecast for South Korea’s potential growth rate to rebound for a second consecutive year was “a very positive sign that the fundamentals of the Korean economy are coming back to life.”
Lee posted a message on X (formerly Twitter) that day titled “A dramatic turnaround in the fundamentals of the Korean economy, a first in about 40 years,” and said, “According to major media outlets, the International Monetary Fund (IMF) projects that South Korea’s potential growth rate will rebound for two consecutive years, this year and next.”
He added that “two consecutive years of growth in the potential growth rate would be the first time in about 40 years, since the 1986–87 ‘Three Lows’ boom, a period of low oil prices, low interest rates and a weak dollar.”
The potential growth rate is the rate of growth that can be sustained without generating inflationary pressure and is an indicator of a country’s economic fundamentals. The report Lee shared estimated South Korea’s potential growth rate, based on the IMF’s real gross domestic product (GDP) growth rate and GDP gap ratio, at 1.94% last year, 2.14% this year and 2.20% next year.
Lee said, “Now is the time to build on our stronger fundamentals so that our economy can gain vitality and continue to grow, and to ensure that the fruits of growth are shared evenly among all our people.”
He stressed, “Alongside the success of the Three Mega-Projects and the Seven SEED Projects to help South Korea become an industrial powerhouse with an overwhelming competitive edge, I will concentrate our efforts on ensuring that people feel the benefits of growth through housing supply, job stability and inclusive finance—the three key social policies.”
Finally, he added, “I will do my utmost to make people’s lives better.”
[email protected] Seong Seok-woo Reporter