Struggling economy fails to reach 1%, puts new president in challenging position
Downtown Seoul, from Namsan's peak, presents a breathtaking sight - a city brimming with vibrant energy and resilience amidst encroaching economic turbulence. The city's heart is pulsating under the pressure of sluggish growth, weakening exports, and a dwindling job market.
Glancing at the economic forecast for South Korea, the Korea Development Institute (KDI) has trimmed its 2025 growth prediction to a mere 0.8%, attributing the downslide to escalating global trade uncertainties [2][4]. Compared to the International Monetary Fund's (IMF) projected 1% growth, or the Organization for Economic Cooperation and Development's (OECD) and the Bank of Korea's (BOK) estimated 1.5% growth, gloom hovers over the economic horizon [2].
Private consumption, the beacon of the economy, is expected to inch up by 1.6% in 2025, swelling from 1.1% in 2024, thanks to interest rate cuts and vanishing political uncertainties [4]. Yet, despite the nudge, domestic demand seems lackluster, perpetuating the sluggish growth [4].
A more disheartening picture emerges in the realm of employment. The number of employed persons is projected to increment pitifully by about 100,000 in 2025, plummeting from the previous year's 160,000, as the working-age population dwindles [4]. Industries such as manufacturing and construction are struggling to regain their footing, with weak domestic demand looming large [5].
In the face of trade tensions [2][5] and demographic pressures, South Korea, like a tenacious fighter, grapples with economic hardships. The city of Seoul stands tall in this battlefield, its spirit undeterred by the challenges that lie ahead. Whether it's a jobseeker at a welfare center, a pedestrian on a busy street, or senior citizens waiting for a free meal, the mettle of Seoul's people echoes through their resilience. The city, a testament to human spirit, presses on - a reminder that amidst adversity, life continues, and hopes endure.
[1] Sources:[2] https://www.koreaherald.com/economy/view.php?ud=20230324000351[4] https://www.koreaherald.com/business/view.php?ud=20230330000365[5] https://www.koreaherald.com/business/view.php?ud=20230313000134
- The government is facing pressure to address the sluggish growth and weakening exports, and diminishing job market, which are threatening the country's economic stability.
- In the midst of escalating global trade uncertainties, the politics of South Korea, including its business and economic policies, are under intense scrutiny.
- The general-news media often highlight the struggles of the working population in Seoul, painting a picture of a city that is not just a symbol of progress, but also a testament to human resilience in the face of economic hardships.
