Recently, major domestic and international institutions have been raising their outlook for Korea's economic growth rate this year. Due to positive factors such as strong semiconductor exports and a recovery in domestic demand, many institutions expect a higher growth rate than the Bank of Korea (3.3%). However, the growth rate forecast for next year was lower than that of the Bank of Korea (2.9%). In this situation, Kim Nam-joon, a lawmaker of the Democratic Party of Korea, emphasized the importance of fiscal policies to promote private investment and support structural recovery of domestic demand. The fact that this year's growth rate is expected to be high shows a characteristic different from past economic growth diffusion paths.
