The Asian Development Bank (ADB) on April 28 announced the “Asian Economic Outlook 2021”, which raised the Korean economic growth rate this year to 3.5%, higher than 0. .2% compared to the forecast made in December 2020 (3.3%). ADB analyzes Korea’s economic growth recovery is due to expansionary fiscal and monetary policy, demand for semiconductors and information technology equipment to help export growth, automobile tax. Consumption reduction and the “Korean New Deal” (Korean New Deal). ADB also forecasts that the Korean economy will grow at 3.1% in 2022.
Previously, the Hyundai Economic Research Institute on April 25 released the report “Revised Korean Economic Outlook”. Accordingly, the agency has also adjusted the Korean economic growth rate in 2021 to 3.5%. Specifically, the Korean economy is expected to grow by 3.3% in the first half and 3.6% in the second half. Although the possibility of a resurgence of the COVID-19 epidemic is a detrimental factor affecting the Korean economy, economic actors are gradually adapting to the re-spreading of the epidemic. Moreover, demand for domestic consumption and investment as well as external trade is expected to improve this year as well.
The Hyundai Research Institute predicts that a recovery in the world economy and expanded overseas demand will help Korea’s export growth rate this year increase by 18.1%, boosting economic growth. Consumption sentiment will also improve as COVID-19 vaccination is promoted, private consumption growth rate is expected to increase from negative -4.9% last year to 3.5% in this year. Equipment investment surged by 6.8% last year, will continue its high growth rate of 7.5% thanks to economic recovery, increasing demand for contactless digital and investment in investment sectors. expanded eco-friendly area.
Korea is planning to temporarily lift import tax on corn, contributing to reducing pressure from domestic inflation. Currently, Korea’s corn import tax is at 3%. According to Finance Minister Hong Nam-ki, South Korea will import corn and some grains at a zero tax rate until the end of this year in the form of import tariff quotas. Last month, prices of agricultural, forestry and fishery products in Korea increased by 13.7% over the same period in 2020, due to supply shortages and the avian flu pandemic.
In March 2021, Vietnam exported $196.6 million of main AFF products to South Korea, up 12.9% over the same period in 2020. In which, wood and wood products had the highest export turnover. to this market accounted for 41.3%, the second was seafood with 33.2%, vegetables and fruits accounted for 9.2%. Among the main export items, only two items with an increase in export turnover are coffee and fertilizers, while the rest of the other items have a decrease in turnover compared to the same period in 2020.
Detailed report can be found here.