02311cas a2200301 a 4500 AALejournalIMF021664 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513575216 1018-5941 BD-DhAAL BD-DhAAL Swiston, Andrew. Korea's Growth Prospects : Overcoming Demographics and COVID-19 / Andrew Swiston. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Korea's economy has leaped to high-income status thanks to several decades of sustained high growth. However, population aging and shifts in global demand provide headwinds for future growth and Korea now faces the effects of COVID-19 on economic activity. This paper asseses the expected drag on potential growth from these factors and discusses policies that could provide offsetting upward momentum by facilitating structural transformation. We find that potential output growth slowed to about 2 1\2 percent before the COVID-19 pandemic and would have fallen to 2 percent by 2030, mainly due to demographic factors. Moreover, there is a possibility of scarring from the COVID-19 shock as adjustment frictions from structural rigidities interact with shifts in demand and supply patterns, lowering investment and labor force participation. At the same time, industry-level analysis suggests ample scope to raise productivity, especially in services where productivity gains have lagged. Addressing these rigidities could offset a large proportion of the expected downward pressure on potential output. Mode of access: Internet Capacity imf Capital imf Employment imf Intangible Capital imf Investment imf IMF Working Papers; Working Paper ; No. 2021/092 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/092/001.2021.issue-092-en.xml IMF e-Library