Signal KDI projects Korea's potential growth falling from about three percent to the zero percent range by the 2040s

Summary

Projections by the Korea Development Institute cited by the government trace a long decline in Korea's potential growth rate. The rate stood in the three percent range during the 2010s. By 2025 it is placed in the upper one percent range. The same projection lowers it to the low-to-mid one percent range around 2030 and to the zero percent range in the 2040s. The government uses this path as the headline evidence that the growth capacity of the economy is eroding over the coming decades.