OECD projects S. Korea's potential growth rate to hit record low in 2027

The Organisation for Economic Co-operation and Development (OECD) forecasts South Korea's potential growth rate to reach a historic low of 1.8% in 2027. This represents a significant decline from the 2.1% expected for 2025 and 2.0% for 2026. The downward trend is attributed to factors such as a rapidly aging population and a slowdown in productivity gains. The OECD's analysis suggests these demographic and economic shifts will continue to weigh on the country's long-term economic expansion capabilities.

This projection highlights the urgent need for South Korea to address demographic challenges and implement policies to boost productivity to maintain future economic vitality.