[Editorial] Slow growth trap koreaherald.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from koreaherald.com Daily Mail and Mail on Sunday newspapers.
A slow pace of growth of around 2 percent or lower is feared to have become the new normal for the Korean economy, as the spillover effects of China’s economic downturn, high energy prices and soaring interest rates deal a heavier blow to exports and private spending here, according to analysts, Sunday.
Korea is at risk of entering a phase of low economic growth due to escalating household debt, which showed the second-largest rise in the world over the last seven years in terms of the ratio of debt to gross domestic product (GDP). This fact was highlighted recently in a working thesis released by the National Bureau of Economic Research (NBER).