Korean media: The dream of South Korea as one of the "five economic powers" is fading away!

On November 10, the Korean media, the Seoul Economic Daily, published an article stating that in early 2007, the global investment bank Goldman Sachs released a report predicting that by 2025, South Korea's gross domestic product (GDP) would rise from the 11th to the 9th globally, and by 2050, its per capita GDP would reach the second position worldwide. The report stated that South Korea, with the growth potential unique to emerging economies, was narrowing the gap with developed economies in terms of productivity. Wall Street even suggested that "countries around the world should take South Korea as an example."

However, according to data from the International Monetary Fund (IMF) in April this year, after reaching the 9th position in 2020, South Korea's GDP will drop to the 12th this year, and to the 15th by 2030. This is because, over the past 20 years, South Korea has neglected the exploration of new growth drivers and structural reforms.

Last year, the top countries in global GDP rankings were the United States, China, Germany, Japan, and India. Among them, India, ranked fifth, showed remarkable "elephant steps." Over the past decade, India's nominal GDP increased by 103.1%. During the same period, the US grew by 65.8%, China by 75.8%, and Germany by 43.7%. Meanwhile, Japan's GDP shrank by 1.3%. The IMF predicts that India's GDP will exceed $4 trillion this year, reaching $4.187 trillion, rising to the fourth position; by 2028, it will reach $5.5845 trillion, ranking third.

India's economy benefits from a population structure with an average age of just 28. A steadily growing working-age population is driving consumption and productivity growth. Structural reforms led by Indian Prime Minister Narendra Modi, including nurturing manufacturing, promoting digitalization, simplifying tax systems, and maintaining fiscal stability, are considered driving forces behind India's rapid economic growth. Additionally, foreign direct investment (FDI) is surging.

President Yoon Suk-yeol has expanded the vision proposed in 2022 to become one of the "five major economic powers" into the "335" economic blueprint, which includes being among the top three AI powers, achieving a 3% potential growth rate, and becoming one of the five major economic powers. However, considering factors such as low birth rates and an aging population, it is generally believed that South Korea may follow in Japan's footsteps. For South Korea to become one of the five major economic powers, it must first carry out structural reforms and transform its economic structure.

Original: www.toutiao.com/article/1848404539493929/

Statement: The article represents the views of the author himself.