President Lee remains optimistic about next year`s economy

(ATTN: RECASTS headline, lead, para 2; ADDS para 4-7; MODIFIES throughout)
SEOUL, Dec. 15 (Yonhap) -- President Lee Myung-bak said Monday his country would manage to achieve 2-3 percent economic growth next year, maintaining an earlier forecast that critics insist needs sharp adjustments to reflect the slumping economy.
South Korea, Asia's fourth-largest economy, has been struggling with its weakest
economic performance in a decade on the back of the U.S.-sparked global credit
crunch.
The Bank of Korea last week estimated South Korea's economy would grow by 2
percent next year, a sharp reduction from the Lee government's optimistic
estimate of 4 percent which was assumed in the 2009 budget.
"If things get worse in the first half of next year, we can make adjustments (to
the growth target), but we'll try to maintain 2-3 percent economic growth," Lee
was quoted as saying by ruling party leader Park Hee-tae during their meeting
over breakfast.
Lee's remarks are expected to trigger further criticism from opposition parties
and economic experts who say his administration has not been sharp enough in
implementing rescue measures while banks, businesses and households bear the
brunt of the worldwide financial meltdown.
The South Korean central bank's forecast for 2009 suggests growth will almost
halve from the 3.7 percent recorded this year, its lowest level since the 1997-98
Asian financial crisis.
Many analysts have also predicted the growth rate could fall to as low as the 1
percent range as the slowdown in the country's real economy will begin in earnest
next year.
President Lee expressed confidence, however, saying South Korea has managed to
survive the "worst phase of the financial crisis."
"The current account is expected to swing to a surplus next year. Circumstances
will take a positive turn if we manage to keep it that way," he said.
South Korea's current account posted its first deficit in 11 years in 2008.
hayney@yna.co.kr
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