OECD says S. Korea's potential growth rate will fall below 2%

The Organization for Economic Cooperation and Development says South Korea's potential GDP growth rate next year will fall below two percent.

According to the economic outlook report released by the OECD on Monday, the country's potential growth rate for 2026 stands at 1-point-9-8 percent, down point-zero-four percentage points from this year's forecast of 2-point-zero-two percent.

The outlook follows other forecasts, including the Korea Development Institute which predicted a figure below 2 percent.

Potential GDP is the maximum level of production that a country can achieve by mobilizing all of its production factors, including labor, capital, and resources, without causing inflation.