Korea’s economy could be smaller than Philippines’ by 2075, Goldman Sachs says: DONG-A ILBO | Bot To News

Goldman Sachs, an American global investment bank (IB), has predicted that the Korean economy will begin to decline from 2060 due to an aging population, and by 2075 it will fall behind Asian countries such as the Philippines, Malaysia and Bangladesh. It analyzes that although Korea will rise as a high-income country behind the US and European countries in terms of per capita income, the shrinking population due to low birth rates and an aging society will drag down the overall size of the economy.

The “Road to 2075” report released by the IB on Thursday (local time) predicts that Korea’s economic growth rate will fall from an average of 2% in 2020 to 0.8% in 2040, -0.1 % in 2060 and – 0.2% in 2070s. Among the 34 countries for which Goldman Sachs released its growth rate forecast, Korea was the only country expected to record a negative growth rate.

Korea’s real gross domestic product (GDP) is expected to increase from US$2 trillion in the 2030s to US$3.3 trillion in 2060 and then stagnate at US$3.4 trillion in 2075. Accordingly, the Korean economy will from in 2075, dwarfing that of Japan ($7.5 trillion) and even Southeast Asian countries such as the Philippines ($6.6 trillion), Malaysia ($3.5 trillion), and Bangladesh ($6.3 trillion).

The report predicts that Korea’s real GDP per capita will reach $101,800 in 2075, bringing it closer to the US ($132,200) and Europe ($14,300).

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