Signal KDI projections cited in the plan show Korea's potential growth rate sliding toward zero within a decade

Summary

The plan's diagnosis of the Korean economy opens with a warning that growth engines are weakening on both the supply and the demand side. It cites projections that the potential growth rate could fall into the zero percent range within ten years. Stagnant productivity is described as speeding up this decline. The plan adds that within five years the contribution of labour input to growth is expected to turn negative, which it calls a structural turning point. Charts credited to KDI accompany the diagnosis, comparing earlier and more recent potential growth projections with changes in the working-age population and breaking growth down by factor.