Lee says rebound in potential growth rates should lead to balanced growth
President Lee Jae Myung speaks during a senior aides' meeting at Cheong Wa Dae, Thursday. Joint Press Corps
President Lee Jae Myung said Thursday that the recent rebound in the country's potential growth rates signals a recovery in the national economy's fundamentals and that the trend should help promote balanced growth of both large and small firms.
The president made the remarks at a meeting with his senior aides, citing a recent International Monetary Fund (IMF) report projecting the country's potential growth rate at 2.14 percent this year and 2.2 percent in 2027. The figures mark the first consecutive annual increases in about 40 years.
"The rebound in potential growth rates, which can be viewed as basic physical strength for an economy, is welcome news that indicates the foundation for the growth of our economy is getting stronger," Lee said.
The president stressed that this trend should serve as a steppingstone to promote sustainable, balanced growth by further solidifying the competitiveness of artificial intelligence and other advanced industries while focusing financial and policy resources on sectors that are slower to recover.
"In order for the rare rebound in potential growth rates to lead to qualitative improvements in the economic (conditions) of the people, (the country) should create an industrial ecosystem in which conglomerates and small and medium-sized firms can grow together," the president noted.
The concentration of growth only for conglomerates is feared to worsen economic polarization, which could in turn harm the national economy's potential growth capacity, he said, adding that this would be "undesirable" for smaller firms that account for 80 percent of total employment.
"The paradigm for mutual cooperation between conglomerates and smaller firms should be renewed so that they can grow together in a balanced manner to spearhead growth in people's livelihoods."
Additionally, the president instructed officials to inspect safety management at key facilities that draw crowds and government readiness to respond to any crowd-related accidents ahead of autumn festivals, including Halloween.
"As even a small risk factor could lead to large-scale accidents at places where many people gather, thorough preparations are essential in advance," the president noted.