OECD Lowers South Korea Growth Forecast, Raises G20 Inflation Outlook

The Organisation for Economic Co-operation and Development (OECD) has lowered its economic growth forecast for South Korea to 1.7% from 2.1%. This indicates that global inflationary pressures are persisting and concerns over an economic slowdown are increasing. The OECD also revised upwards its forecast for South Korea's consumer price inflation to 2.7% from 1.8%, and raised the annual consumer price inflation forecast for the G20 nations to 4.0%.

The OECD revealed this in its interim economic outlook report released on March 26. It was analyzed as a result of mounting pressure from rising energy prices due to the Middle East conflict, which has increased overall inflationary pressures.

The deepening conflict in the Middle East region was assessed as a factor putting the global economy's resilience to the test. It was pointed out that Asian countries, including South Korea, with high dependence on Middle Eastern energy, could face burdens on production activities if the war prolongs.