News & Event
Press Conference on 2023 World Economic Outlook Updates
The Korea Institute for International Economic Policy (KIEP) held its regular press conference titled "2023 World Economic Outlook Updates" on May 16, 2023 at 10:00 AM in the Briefing Room on the 4th floor of the Government Sejong Complex. The event was attended by journalists from the Ministry of Economy and Finance.
This conference was broadcasted live online through the government portal e-Briefing, providing an opportunity to present the updated global economic growth rate for this year and forecast the growth rate for the global economy in the following year, as well as address current issues related to the world economy through a Q&A session.
During his opening remarks, President Heungchong Kim of KIEP adjusted the forecast for the global economic growth rate in 2023 to 2.6%, which was a 0.2% increase from the previous forecast. He also projected a growth rate of 3.0% for 2024. President Kim described the current state of the global economy as showing an upward trend but cautioned that the path is narrow and precarious. He compared it to walking on a saddle path, where a slight misstep could lead to a dangerous situation. The key theme of this year's global economic outlook announcement, as highlighted by President Kim, was the "Narrow Path Towards Slow Recovery."
President Kim pointed out potential risks that could hinder global economic growth. These risks included the path of long-term stagnation due to financial instability and credit tightening, the weakening coordination of global policies amidst various issues, and the risks associated with China in the process of diversifying supply chains and transitioning towards domestic consumption.
Director Sungbae An of the International Macroeconomics & Finance Department provided an overview of the outlook, forecasting a period of economic slowdown due to high core inflation and tight credit conditions in major advanced economies. Despite positive factors such as a robust job market, the U.S. is expected to record a growth rate of 1.2% annually due to tight credit conditions in the financial sector and high policy interest rates. The Eurozone and the U.K. are projected to achieve growth rates of 0.8% and -0.2%, respectively, while Japan is expected to record a growth rate of 1.4%.
Emerging economies have lowered their growth rate forecasts compared to advanced economies due to high inflation levels and weakened external demand. However, China's growth outlook has been revised upward due to the reopening of the economy and the effectiveness of policy measures in stimulating domestic demand. China is expected to achieve an annual growth rate of 5.5%, India 5.2%, and the ASEAN five countries 4.7%. Russia is forecasted to grow at a rate of 0.5% due to the base effect following the -2.1% contraction in 2022, while Brazil is expected to achieve a growth rate of 1.0%.
The press conference was attended by KIEP experts, including President Heungchong Kim, Vice President Sung-Chun Jung, Director Sungbae An of the International Macroeconomics & Finance Dept., Director Jong Duk Kim of the International Trade Dept., Deputy President Kwon Hyung Lee of the Center for Area Studies, Deputy President Jione Jung of the Center for International Development Cooperation, Head Wonho Yeon of the Economic Security Team, Head Jangho Choi of the International Cooperation for Korean Unification Team, Head Ji Young Moon of the Chinese Economy and Trade Team, Head Gu Sang Kang of the Americas Team, Head Young-ook Jang of the Europe Team, Head Minhyeon Jeong of the Russia and Eurasia Team, Senior Research Fellow Young Sik Jeong of the International Finance Team, along with other internal experts and journalists from the Ministry of Economy and Finance.
- Title: Press Conference on 2023 World Economic Outlook Updates
- Date: May 16, 2023, 10:00-11:30
- Venue: Ministry of Economy and Finance, Government Complex Sejong / E-briefing
- Host: Korea Institute for International Economic Policy (KIEP)