OECD revises up its 2021 growth outlook for S. Korean economy to 3.3 pct

SEOUL, March 9 (Yonhap) — The Organization for Economic Cooperation and Development (OECD) on Tuesday revised up its 2021 growth outlook for the South Korean economy as the country’s exports remain robust amid the pandemic.

The OECD expected Asia’s fourth-largest economy to grow 3.3 percent this year, up from its December estimate of 2.8 percent. Still, the Paris-based organization revised down its 2022 growth forecast for South Korea to 3.1 percent from 3.4 percent.

The upward revision for the 2021 growth comes as the country’s exports remain solid amid a global economic recovery.

Exports, which account for half of the Korean economy, rose 9.5 percent on-year in February on robust delivery of chips and autos, extending their gains for the fourth consecutive month.

The OECD’s growth forecast is above the growth estimates made by the International Monetary Fund (IMF) and the Bank of Korea (BOK), South Korea’s central bank.

The IMF expected the South Korean economy to grow 3.1 percent this year. The BOK forecast Asia’s fourth-largest economy to advance 3 percent in 2021 on improving exports. The Korean government’s growth estimate stood at 3.2 percent.

South Korea is widely expected to return to the pre-pandemic level this year, becoming one of seven nations to do so among the Group of 20 (G20) economies, according to the finance ministry.

Last year, the South Korean economy contracted 1 percent — the first yearly retreat since the 1997-98 Asian financial crisis — amid the COVID-19 pandemic. But in terms of yearly performance, it ranked third among the G20 nations, after China and Turkey.

The OECD revised its 2021 growth outlook for the global economy up to 5.6 percent from its earlier estimate of 4.2 percent. Next year, the global economy is expected to grow 4 percent.

sooyeon@yna.co.kr (YONHAP NEWS)