The Organization for Economic Cooperation and Development has slashed its growth outlook for South Korea's economy this year from 2-point-6 percent to 2-point-4 percent... citing slowdown in global trade and weakened domestic demand.
The OECD also warned that the world's 11th largest economy needs to raise its labor productivity.
Kim Hyo-sun has the details.
The OECD has slashed this year's growth outlook for South Korea to 2-point-4 percent.
That's down zero-point-two percentage points from the previous forecast made in March.
And zero-point-four percentage points lower than last November's forecast.
S. Korea's lowered growth outlook reflects declining exports due to slowing global trade: OECD
The OECD said in its economic outlook report released Tuesday that the lowered growth outlook reflects Seoul's declining exports amid slowing global trade and industrial restructuring for local manufacturers.
Meanwhile, the international organization raised the 2019 growth outlook for the U.S. and eurozone to 2-point-8 and 1-point-2 percent, respectively.
As for next year,... the OECD also cut South Korea's growth outlook to 2-point-5 percent,... down zero-point-one percentage points from the March forecast.
It stated the country's growth is slowing in part because of a decline in fixed investment and weak job creation.
The organization said, however, that some momentum will build in 2020 backed by the government's expansionary fiscal policies and a recovery in investment.
S. Korea should raise labor productivity as it's fastest aging country among OECD
The report pointed out that Seoul's main challenge is to raise labor productivity,... explaining the country has the fastest aging population among the OECD member-states.
The OECD also said it expects the South Korean government's supplementary budget plan will reinvigorate the economy.