After a half-century of remarkable growth, South Korea's economy is struggling. But a new strategy that nurtures more diversified sources of growth, while reducing excessive reliance on exports and large enterprises, can reinvigorate and sustain long-term growth.
SEOUL – In the last half-century, South Korea has become a model for developing countries, with remarkable economic growth enabling it to become the world’s eighth largest trading country and achieve per capita income of $26,000. But lately its economy has been faltering, with GDP growth averaging 3.6% for the last ten years – a significant drop from the 8.1% annual growth rate that prevailed in 1965-2005. And the OECD projects a further decline – to around 2.5% – in the coming decade.
SEOUL – In the last half-century, South Korea has become a model for developing countries, with remarkable economic growth enabling it to become the world’s eighth largest trading country and achieve per capita income of $26,000. But lately its economy has been faltering, with GDP growth averaging 3.6% for the last ten years – a significant drop from the 8.1% annual growth rate that prevailed in 1965-2005. And the OECD projects a further decline – to around 2.5% – in the coming decade.