Thread by @Xy5Z89

#SouthKorea #Seoul #Coronavirus #ECONOMY #TRADE
-THREADE-

South Korea's GDP growth projection for 2021 was revised down by the Korea Development Institute (KDI).The think tank projected the economy to expand 3.1 percent next year in its new economic assessment report Wednesday,

after shrinking 1.1 percent this year. 3.1 percent is 4 percentage points lower than the previous September forecast. The KDI clarified that, due to increasing downside risks emerging from the global resurgence of COVID-19, the economy has started to contract,

primarily in the service sector. Total consumption will likely grow by just 3.3 percent next year, according to the KDI survey. In the midst of the gradual recovery of the global economy, exports are projected to increase 3.1 percent in 2021,

and imports are predicted to increase 3.8 percent. The current account of South Korea is expected to report a surplus of US$ 57.9 billion next year, lower than this year, owing to increased imports in the midst of worsening trade conditions.

It is predicted that consumer prices will increase by 7% next year, just slightly higher than this year, owing to low inflation for the near future.
As the service sector continues to suffer, the number of jobs is projected to rise by just around 100,000 next year,

and the unemployment rate will likely be higher than this year.
An expert also states that only some industries can be limited to new employment. Regarding the U.S. election,

the KDI said the economic ambitions of presumptive president-elect Joe Biden could face obstacles with a solidly Republican Senate, and it would take time to enact its policies-so their effect for 2021 would not be significant.

It also noted that the Institute could update its growth forecast if COVID-19 vaccines are fully distributed before the end of 2021.