Strong economic fundamentals and sound macroeconomic policies have helped the economy of the Republic of Korea through multiple shocks in recent years. However, potential growth has slowed more quickly than in other major advanced economies, and the economic expansion is likely to moderate this year. Aging could shrink the labour force by more than a quarter by 2050, leading to an average annual decline of 0.67 percentage point in potential growth, write the IMF’s Rahul Anand, Diaa Noureldin, Zexi Sun, and Xin Cindy Xu in their Global Issues article. Improving the efficiency of resource allocation across firms within sectors could increase aggregate productivity growth. And better and broader use of artificial intelligence would help support potential expansion, the authors write. https://www.globalissues.org

Related Articles:

• Supporting the Global South in Tackling Climate Change: Where is the G20 heading?
• The ECB Strategy: The 2021 Review and its Future
• Multi-stakeholder Partnerships in the 2030 Agenda