World Bank ‘sudden economic recession, marked slowdown in trade’ Korean media ‘upward’

World Bank ‘sudden economic recession, marked slowdown in trade’ Korean media ‘upward’

The World Bank published a report of a “sudden recession” and “significant slowdown in trade” in the economy this year, but the Korean media reported mostly as “a slight increase in the global growth rate to 2.1%.”
World Bank Chief Economist Indermit Gill said at a press conference on the 6th that the World Economic Outlook report was "another depressing report" and that "last year's sharp and simultaneous recession will continue into a sharp recession into this year." Reported.
“By the end of next year, developing countries will not be able to meet per capita income levels at the end of 2019,” he said. did.
The Korean media, which reported on the World Bank's 'Economic Prospect Report for this year' on the 6th, said, 'This year's global economic growth rate was expected to be 2.1%, down 1 percentage point from last year, but it was raised by 0.4 percentage points from the 1.7% forecast earlier this year. It was delivered as 'good growth' because it was a modest growth forecast of 2.4%.
The report revealed a sharp slowdown in the economic growth rate for developed countries from 2.6% last year to 0.7% this year and predicted a continued slowdown of 1.2% growth next year (2024).
The report forecasts a rapid slowdown for the US economy from 1.1% growth this year to 0.8% in 2024.
Regarding economic growth in the euro area, the report predicted a sharp slowdown from 3.5% last year to 0.4% this year.
Regarding China's economic growth, the report forecasts a slowdown in growth of 5.6 percent this year and 4.6 percent next year.
The report also revealed that growth rates in both Japan and India were “expected to slow.”
The report predicted growth rates of 1.5% in Europe and Central Asia, 1.5% in Central and South America, and 2.2% in the Middle East and North Africa.
“Debt in low-income countries is growing rapidly, with half of 28 low-income countries ranked as high-risk countries suffering from debt as of February this year,” the report said. to become more efficient and improve debt management practices.”
The U.S. Department of Labor’s May report confirmed on the 3rd that “jobs are added and the unemployment rate rises at the same time,” with households losing jobs (unemployment increase) and business surveys confirming the duality of “employment growth.”
“Reflecting the resilience of the job market after more than a year of aggressive rate hikes by the Fed, many industries, from construction to restaurants to healthcare, are struggling to catch up with consumer demand and restore their workforce to pre-pandemic levels,” the Associated Press wrote in response to the Labor Department report. "However, mixed messages appeared in the March figures, especially with the unemployment rate rising and showing the highest unemployment rate," it reported.
The US job market saw employers add the most jobs since January in March. By May, average hours worked per week had fallen, costing hundreds of thousands of jobs, the Associated Press said.
On average, as weekly wages fell, average hours worked per week also fell, and hourly wage growth also declined, suggesting that most companies no longer need higher wage conditions to find and retain workers, the AP said.
“Consumers are showing signs of straining to keep up with higher prices,” said the Labor Department report. increased over the years,” the AP said.
One of the main reasons why the US May employment index was 'households actually losing jobs' and 'corporate surveys showed a sharp increase' is that the number of self-employed people in the household survey decreased significantly, and the self-employed are included in the household survey, but the business survey does not. not included.
As the number of self-employed people in Korea increased rapidly and their income decreased, they were pushed into the blind spot of employment indicators.
According to data from the National Tax Service, the number of business income taxpayers (self-employed) in 2021 was 6,568,000, an increase of 1,842,000 (39%) from 2017 (4,726,000). It is below 10,000 won.
After 21.7 million won in 2017 and 21.36 million won in 2018, self-employment income is on the decline.
Deputy Prime Minister Choo Kyung-ho said in an answer to the National Assembly on the 22nd of last month, "The trade balance deficit will improve after May, and in particular, in the fourth quarter, we will be able to see a completely different performance."

'Yonhap News' <World Bank slightly raises global growth rate this year to 2.1%... "Weak until next year", "Chosun Biz" <World Bank, global economic growth forecast for this year raised from 1.7% → 2.1%> "Hankyoreh" <World Bank, global growth forecast for this year raised from 1.7% → 2.1%> on the 7th Reported.