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Korea faces risk of economic growth decline similar to Japan: IMF director Updated: 2015-12-27 18:23:49 KST

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2015-12-27

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Korea could soon see a drop in its growth potential due to its rapidly aging population. That's according to Rhee Chang-yong‚ director of the IMF's Asia and Pacific Department‚ who spoke to Seoul-based Yonhap News Agency on Sunday. He said Asia's fourth largest economy needs to revive its economic dynamics to achieve sustainable growth. To prevent chronic low growth‚ he suggested structural reforms in childbirth‚ healthcare‚ education and the service sector in the mid- and long-term. If the timing of the reforms is missed‚ Korea could go the way of Japan and see its growth potential drop to Point-5 percent over the next decade or two. On a more positive note‚ Rhee says Korea's fundamentals are strong enough to overcome the current financial difficulties‚ citing Moody's recent upgrade of Korea's sovereign credit rating to Aa2‚ the third highest and higher than those of Japan and China. Reporter : danc@arirang.co.kr

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