A local think tank has predicted that South Korea’s potential economic growth rate will fall below three percent starting this year.
 
Researcher Kim Chun-koo at the Hyundai Research Institute released a study showing South Korea’s potential output could fall to two-point-seven percent between this year and 2020. 

The study added that potential growth could fall to two-point-three percent between 2021 and 2025, and to two percent between 2026 and 2030.

The report also noted that the potential growth in South Korea had fallen in the last 15 years. The figure for 2001 through 2005 recorded four-point-seven percent while that for 2011 through 2015 marked three-point-two percent.

Potential growth measures the maximum output growth that an economy can sustain over the medium to long term without inciting inflation.