The Korea Times
A semiconductor export boom is underpinning Korea's economic growth, but deeper structural weaknesses continue to weigh on its long-term trajectory, economists and market analysts said Sunday. Their view is that policy measures are needed to ease the economy's heavy reliance on semiconductors, while long-term efforts should focus on boosting growth in the face of a rapidly aging population and low birth rates. According to the latest data from the Organization for Economic Cooperation and Development (OECD), the country's potential growth rate is estimated to decline to 1.71 percent this year from 1.92 percent in 2025. It is projected to decline further to 1.57 percent next year. The OECD expects the quarterly rate to slow to 1.52 percent in the fourth quarter of 2027, pointing to a continued gradual slowdown. Potential growth refers to the maximum level of output an economy can sustain by fully utilizing labor, capital and other resources without triggering inflation. It is widely seen as a measure of an economy's underlying strength. The OECD data showed that Korea's potential growth ra
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