Economy weighed down by slumping domestic demand, exports: minister

SEOUL, April 9 (Yonhap) -- South Korea's economy is showing some positive signs
but it is still too early to predict a quick recovery as exports and domestic
demand remain in a slump, the nation's top economic policymaker said Thursday.
"It is true that our economy is showing positive signals in some areas," Finance
Minister Yoon Jeung-hyun told lawmakers. "Industrial and service-sector output is
growing month-on-month and currency and stock markets are also stabilizing."
"Still, exports and domestic demand remain weak. With global economic outlooks
being lowered, it is tough to know whether to be optimistic or pessimistic," he
added.
Buffeted by global financial turmoil and a worldwide recession, South Korea's
economy, Asia's fourth-largest, shrank 5.1 percent in the fourth quarter from
three months earlier and is expected to post minus growth this year for the first
time since the 1997-98 financial meltdown.
Exports, which account for around 60 percent of the nation's gross domestic
product, declined 21.2 percent in March from a year earlier, after declining 18.3
percent the previous month.
The government has been pushing to reinvigorate the economy with expanded fiscal
spending, tax reductions and other deregulations. Recently, it endorsed a
large-scale extra budget aimed at generating jobs and reviving the overall
economy.
kokobj@yna.co.kr
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