S. Korea's exports to shrink 16 pct this year: finance ministry

SEOUL, April 16 (Yonhap) -- South Korea's exports will likely shrink 16 percent this year amid a protracted global economic slowdown, the finance ministry said Thursday.

Exports will amount to US$354.5 billion this year, compared with $422 billion a
year earlier, according to the Ministry of Strategy and Finance. Imports are
projected to decline 21 percent to $343.9 billion.
The figures were used to craft a 28.9 trillion won ($21.9 billion) extra budget
submitted to parliament last month. The additional spending is intended to
generate jobs and revive the sputtering economy, the ministry said.
Exports, which accounted for around 60 percent of the nation's gross domestic
product, declined 21.2 percent on-year in March after falling 18.3 percent in
February.
The bleak export outlook is in stark contrast with an earlier export target
released by the Ministry of Knowledge Economy which is in charge of the nation's
trade. It aims to post $426.7 billion in overseas shipments, up 1 percent from
the previous year.
"There might be a gap (between the two predictions)," a finance ministry official
said on condition of anonymity. "The target might be aiming high but our figures
should be more conservative and accurate since they are used in calculating tax
revenue based on which we craft economic policies."
South Korea's economy is feared to fall into the first recession in more than a
decade. The economy will contract 2.4 percent this year, the first minus growth
since the 1997-98 financial meltdown, according to the latest prediction by the
central bank.