Front Matter Page
Asia and Pacific Department and Research Department
Contents
Abstract
I. Introduction
II. Assessing Korea’s Potential Output with an Extended Multivariate Filter
III. The Fiscal Impact of Aging: Implications for Debt Sustainability
IV. Promoting Sustained, Inclusive and More Balanced Growth
V. Conclusions
References
Figures
1. Korea’s Potential Growth
2. Korea’s Employed Population
3. Ratio Between Korea and U.S. Productivity
4. Projected Primary Expenditure
5. Real GDP and Real Interest Rate Assumptions
6. Increased Age-Related Spending with Unchanged Revenues
7. Increased Age-Related Spending Financed by Higher Debt and Higher Revenues
8. Permanent Increase in Social Safety Net Spending Financed by Tax Instruments
9. Permanent Decrease in Saving Rate
10. Combined Effect of Policies on Output, Consumption and the Current Account
11. Combined Effect of Policies on Fiscal Variables
Tables
1. Average Annual Potential Growth
2. Pension and Healthcare Spending Projections