ID :
105464
Tue, 02/09/2010 - 08:28
Auther :
Shortlink :
https://www.oananews.org//node/105464
The shortlink copeid
S. Korea to maintain expansionary economic policy: finance ministry
SEOUL, Feb. 9 (Yonhap) -- South Korea will maintain its expansionary macroeconomic policy stance "for the time being" in order to help accelerate the nation's economic recovery, the finance ministry said Tuesday.
"Based on a reasonable assessment of economic conditions, the government pushed
for active fiscal policies aimed at easing contraction, helping the nation's
economic growth last year," the Ministry of Strategy and Finance said in a report
assessing Minister Yoon Jeung-hyun's first year in office and offering a snapshot
of his future economic policy direction.
"In order to consolidate the recovery trend, we will maintain an expansionary
macroeconomic policy for some time while enhancing our ability to respond to a
crisis," the ministry added.
The remarks come days before the nation's central bank holds a meeting to decide
on its key interest rate, which has been kept at a record low of 2 percent for 11
straight months.
Major countries worldwide are locked in a debate over when and how they will roll
back stimulus measures temporarily introduced to tide over a global economic
slump amid rising jitters that a delay could cause asset bubbles and worsen debt
problems in some countries.
South Korea's government has repeatedly said that it is "premature" to start the
so-called exit strategy as its economic recovery has yet to find solid footing.
"We will establish a solid foundation for an economic recovery by continuing to
frontload budgets and keeping an eased financial policy stance," the ministry
said. "We will also monitor China's possible belt-tightening policy, stricter
regulations on financial institutions by the U.S. and credit anxiety in Europe."
For its longer-term strategy, the ministry said that it will work to turn its
economic structure into one that is not easily swayed by outside shocks by
reducing the country's dependence on exports, bolstering domestic demand and
keeping tabs on household and corporate debts.
South Korea's export-driven economy grew 0.2 percent last year, avoiding what
many worried would be the first contraction in more than a decade amid a global
slowdown. This year, the government predicts the economy will expand 5 percent.
kokobj@yna.co.kr
(END)
"Based on a reasonable assessment of economic conditions, the government pushed
for active fiscal policies aimed at easing contraction, helping the nation's
economic growth last year," the Ministry of Strategy and Finance said in a report
assessing Minister Yoon Jeung-hyun's first year in office and offering a snapshot
of his future economic policy direction.
"In order to consolidate the recovery trend, we will maintain an expansionary
macroeconomic policy for some time while enhancing our ability to respond to a
crisis," the ministry added.
The remarks come days before the nation's central bank holds a meeting to decide
on its key interest rate, which has been kept at a record low of 2 percent for 11
straight months.
Major countries worldwide are locked in a debate over when and how they will roll
back stimulus measures temporarily introduced to tide over a global economic
slump amid rising jitters that a delay could cause asset bubbles and worsen debt
problems in some countries.
South Korea's government has repeatedly said that it is "premature" to start the
so-called exit strategy as its economic recovery has yet to find solid footing.
"We will establish a solid foundation for an economic recovery by continuing to
frontload budgets and keeping an eased financial policy stance," the ministry
said. "We will also monitor China's possible belt-tightening policy, stricter
regulations on financial institutions by the U.S. and credit anxiety in Europe."
For its longer-term strategy, the ministry said that it will work to turn its
economic structure into one that is not easily swayed by outside shocks by
reducing the country's dependence on exports, bolstering domestic demand and
keeping tabs on household and corporate debts.
South Korea's export-driven economy grew 0.2 percent last year, avoiding what
many worried would be the first contraction in more than a decade amid a global
slowdown. This year, the government predicts the economy will expand 5 percent.
kokobj@yna.co.kr
(END)
