ID :
72931
Thu, 07/30/2009 - 15:04
Auther :
Shortlink :
https://www.oananews.org//node/72931
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S. Korea's economy to keep improving in H2: finance ministry
SEOUL, July 30 (Yonhap) -- South Korea's economy will continue to improve in the second half of this year despite lingering uncertainties as labor and business conditions rebound at home and abroad, the finance ministry forecast Thursday.
It is "premature" to talk about ending stimulus programs and the government will
continue its expansionary macroeconomic policy until the economy shows signs of a
full-swing recovery, the Ministry of Strategy and Finance said in a report.
"Despite many economic uncertainties, we expect that the economy will continue
its improving trend even during the second half of this year," the ministry said.
"Growth will turn positive in the second half from a year earlier and the
full-year growth projection of minus 1.5 percent will likely be attained."
The relatively upbeat assessment, submitted during an earlier meeting chaired by
President Lee Myung-bak, comes as the economy has recently begun to show signs of
rebounding, with some key indicators improving from a steep downturn last year.
According to the Bank of Korea, the country's central bank, South Korea's gross
domestic product expanded 2.3 percent in the second quarter from three months
earlier, higher than a government forecast of 1.7 percent growth. The figure is
also much higher than a 0.1 percent advance in the first quarter.
The government and the central bank have implemented massive fiscal spending and
aggressive cuts to the key interest rate. In April, the parliament approved a
large-sale extra budget aimed at generating jobs and boosting domestic demand.
As for the economic view in the second half, the ministry said that improving job
market and business conditions would lead to an increase in household income and
an uptick in overall private-sector consumption down the road.
"We expect economic growth will turn positive in the second half and that it will
not be tough to achieve our full-year growth projection," the ministry said.
"The expansionary macroeconomic policy stance will be maintained for the time
being until the economic recovery materializes... It seems premature to talk
about exit strategies considering current conditions and policy measures taken by
other countries," it added.
The ministry, however, cautioned that lingering jitters over a "double dip" in
the global economy and the nation's lack of fiscal spending capacity might
continue to pose uncertainties for sustainable growth of the export-driven
economy.
It is "premature" to talk about ending stimulus programs and the government will
continue its expansionary macroeconomic policy until the economy shows signs of a
full-swing recovery, the Ministry of Strategy and Finance said in a report.
"Despite many economic uncertainties, we expect that the economy will continue
its improving trend even during the second half of this year," the ministry said.
"Growth will turn positive in the second half from a year earlier and the
full-year growth projection of minus 1.5 percent will likely be attained."
The relatively upbeat assessment, submitted during an earlier meeting chaired by
President Lee Myung-bak, comes as the economy has recently begun to show signs of
rebounding, with some key indicators improving from a steep downturn last year.
According to the Bank of Korea, the country's central bank, South Korea's gross
domestic product expanded 2.3 percent in the second quarter from three months
earlier, higher than a government forecast of 1.7 percent growth. The figure is
also much higher than a 0.1 percent advance in the first quarter.
The government and the central bank have implemented massive fiscal spending and
aggressive cuts to the key interest rate. In April, the parliament approved a
large-sale extra budget aimed at generating jobs and boosting domestic demand.
As for the economic view in the second half, the ministry said that improving job
market and business conditions would lead to an increase in household income and
an uptick in overall private-sector consumption down the road.
"We expect economic growth will turn positive in the second half and that it will
not be tough to achieve our full-year growth projection," the ministry said.
"The expansionary macroeconomic policy stance will be maintained for the time
being until the economic recovery materializes... It seems premature to talk
about exit strategies considering current conditions and policy measures taken by
other countries," it added.
The ministry, however, cautioned that lingering jitters over a "double dip" in
the global economy and the nation's lack of fiscal spending capacity might
continue to pose uncertainties for sustainable growth of the export-driven
economy.
