South Korea | Reopening will spur consumption and the recovery
South Korea’s economy continues to recover despite the surge in Covid cases due to the Delta variant, and should enter 2022 on a firm economic footing. Next year, consumption and exports will be key drivers of growth.
What you will learn:
A policy shift to “living with Covid-19” would lead to a sustained easing of restrictions, which would boost consumption, particularly of services.
Demand for electronics and, as more economies reopen, the continuing global recovery will underpin Korean exports in 2022. But export growth will be less impressive than this year.
Amid rising concerns over deepening financial imbalances and high inflation, monetary policy will likely be adjusted gradually to avoid a disorderly impact on households.