OECD forecasts Korea's potential growth outlook to hit record low 1.52% in late 2027

Korea's potential growth rate is projected to fall to a record low in the fourth quarter of next year, continuing a decadelong downward trend, according to the Organization for Economic Cooperation and Development (OECD). According to the latest OECD data, the country's potential growth rate is projected to reach 1.52 percent in the October-December period of next year, a sharp decline from 1.92 percent last year and an estimated 1.71 percent this year. It is expected to fall further to 1.57 percent next year. The potential growth rate refers to the rate of increase in the potential gross domestic product (GDP), which represents the maximum level of output an economy can sustain by fully utilizing labor, capital and other resources without triggering inflation. Based on the OECD's latest estimates, Korea's potential growth rate has been on a steady decline since 2012, when it stood at 3.63 percent. If the trend continues through next year, the decline will extend into its 15th consecutive year. The data also highlights a widening gap with the United States. Since 2023, Korea has trailed t

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