The Lee administration forecasts the economy's growth this year at 3%. (iClickArt) Unauthorized reproduction and redistribution of this image is prohibited under copyright law.

By Lee Jihae

The Lee administration has raised its forecast for this year's economic growth to 3%.

This is part of its long-term "3-4-5 vision," which seeks potential growth in the 3% range, entry into the ranks of the world's top four exporting countries and per capita income of USD 50,000.

The Cabinet on July 14 announced this as part of an economic growth strategy for the second half of the year.

The Ministry of Finance and Economy raised its growth forecast to 3%, up a full percentage point from its prediction in January, mainly due to the export boom driven by the semiconductor supercycle. 

The forecast for inflation-adjusted nominal GDP growth also ballooned from 4.9% to 12.3%, a figure last attained 30 years ago in 1996. Thus gross national income (GNI) per capita is projected to approach USD 40,000.

The administration's mid- to long-term economic vision set the following targets: potential growth of 3%, status as one of the world's top four exporters and GNI per capita of USD 50,000.

The country's export fundamentals remain robust. The World Trade Organization placed Korea fifth globally in exports from January to April this year.

Overseas shipments also surged 70.9% year on year last month to break USD 100 billion in a month for the first time with USD 102.25 billion.

Cumulative exports in the first half of the year soared 48.4% from the same period last year to a record-high USD 496.7 billion.

If the export boom leads to recovery in domestic demand, the strategy said, the goal of per capita GNI of USD 50,000 is well within reach.

jihlee08@korea.kr