President Lee: "Dramatic Turnaround in Korea's Fundamental Economic Strength... Welcome News After Over 40 Years"

Regarding the International Monetary Fund's (IMF) projection that South Korea's potential growth rate will rise for two consecutive years this year and next year for the first time in 40 years, President Lee Jae-myung assessed it as a "dramatic turnaround in the fundamental strength of the Korean economy" and "welcome news."

In a post on X (formerly Twitter), President Lee said, "A two-consecutive-year rise in the potential growth rate is the first in about 40 years since 1986–1987, during the 'three-low boom' period of low oil prices, low interest rates, and a low U.S. dollar."

President Lee explained, "The potential growth rate is the maximum growth rate a country can achieve by utilizing its maximum resources, including labor, capital, and productivity, without stimulating inflation. Simply put, it is an indicator that shows a country's fundamental economic strength."

He added, "A rebound in the potential growth rate is a very positive sign that the fundamental strength of the Korean economy is coming back to life."

President Lee stated, "Now is the time to build upon this improved fundamental strength so that our economy can gain vitality and continue to grow, and to ensure that the fruits of growth are shared evenly among all citizens."

He continued, "To this end, along with the success of the 'Three Mega Projects' and 'Seven Seed Projects' to leap forward as an industrial powerhouse with a super-gap advantage, the government will concentrate its capabilities on the 'Three Core Social Policies'—housing supply, job stability, and inclusive finance—so that the public can feel the warmth of growth," promising, "We will do our best to make the lives of our citizens better."

Earlier, the IMF estimated in its October World Economic Outlook (WEO) that South Korea's potential growth rate would rise from 1.94% last year to 2.14% this year and 2.20% next year.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.