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

(ATTN: RECASTS lead; ADDS latest export target in 6th para)
SEOUL, April 16 (Yonhap) -- South Korea's exports will likely shrink 16 percent
this year as a protracted global economic slowdown dents demand for its goods
from overseas markets, 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 a target released in December
by the Ministry of Knowledge Economy which aims to post $426.7 billion in
overseas shipments, up 1 percent from the previous year.
Earlier in the day, reflecting the latest global business conditions, the
ministry in charge of the nation's trade lowered the export target to $365
billion, a decrease of around 10 percent compared with a year ago.
"There might be a gap (in predictions between the two ministries)," 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.
kokobj@yna.co.kr
(END)