Considering the mix of challenges and opportunities South Korea faces in the longer term, Wood Mackenzie forecasts its real GDP growth to moderate from 3.1% in 2020 to 2.5% by 2035. Fast ageing population will be a drag on economic growth. In addition, the country faces intensifying competition from emerging economies (esp. China) which have lower manufacturing costs. The government has announced a three-year economic reform programme but progress and details are lacking to date.