Research Briefing | Oct 19, 2021

South Korea | Reopening will spur consumption and the recovery

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.
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