Fiscal Balance in Korea
The Republic of Korea maintained a relatively sound fiscal position from 2013 to 2019, recording surpluses in many years. However, the COVID-19 pandemic led to increased fiscal spending to support the economy, resulting in a large deficit. By 2022, as the economy recovered, the government began focusing on fiscal normalization, aiming to balance economic support measures with the longer-term goal of fiscal sustainability.
The fiscal balance in Korea averaged -0.3% of GDP in the decade to 2022, above the Asia-Pacific regional average of -3.6% of GDP. The fiscal balance in Korea was -3.0% of GDP in 2022. For more fiscal balance information, visit our dedicated page.
Korea Fiscal Balance Chart
Note: This chart displays Fiscal Balance (% of GDP) for Korea from 2013 to 2022.
Source: Korea Ministry of Economy & Finance.
Korea Fiscal Balance Data
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Fiscal Balance (% of GDP) | 1.6 | -0.6 | -3.7 | -1.5 | -3.0 |
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Korean fiscal balance projections for the next ten years from a panel of 9 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable fiscal balance forecast available for Korean fiscal balance.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Korean fiscal balance projections.
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