ID :
75114
Thu, 08/13/2009 - 15:37
Auther :
Shortlink :
https://www.oananews.org//node/75114
The shortlink copeid
S. Korea to post fiscal surplus in 2014: IMF
By Koh Byung-joon
SEOUL, Aug. 13 (Yonhap) -- South Korea's fiscal status remains in relatively better shape than other advanced and emerging economies despite increased state-led spending and a reduced tax base, with the country likely to post a fiscal surplus in 2014, a report said Thursday.
According to the report by the International Monetary Fund (IMF), South Korea's
fiscal deficit will account for 3.2 percent of gross domestic product (GDP) this
year and rise to 4.3 percent next year, but its fiscal balance will turn to black
in 2014 with a surplus amounting to 2.1 percent of GDP.
Saudi Arabia, Russia and Canada, along with South Korea, were among the few
members of the group of 20 emerging and advanced countries whose fiscal balances
are expected post a surplus in the cited year.
The data suggests that the Seoul government may not be able to avoid a shortfall
in the short term due to a series of stimulus measures including tax reductions
and an additional budget aimed at resuscitating the slumping economy, but that by
2014 it will turn to black on the premise that the economy will rebound, experts
say.
South Korea's 2009 fiscal balance was also expected to be better than other major
G20 countries. Saudi Arabia, Indonesia and South Africa are the only countries
that are forecast to maintain better fiscal balances than South Korea this year,
according to the report.
The IMF report comes after efforts by the Seoul government to stimulate the
slumping economy with diverse tax cuts and additional fiscal spending as the
global recession dents the nation's export-driven economy.
In April, the parliament passed an extra budget worth nearly 30 trillion won,
helping to speed up the government's bid to revive the sagging economy. The
additional spending, to be secured primarily through debt sales, raised concern
that it could hurt the nation's fiscal soundness.
The Seoul government has frequently said that it will continue its "expansionary"
macroeconomic policy stance to help speed up an economic recovery.
The IMF earlier revised up its 2009 growth outlook for South Korea, forecasting
Asia's fourth-largest economy will shrink 1.75 percent compared with its earlier
projection of a 3 percent contraction.
The upgrade was attributed to the government's "timely and comprehensive" efforts
to cope with an economic downturn.
SEOUL, Aug. 13 (Yonhap) -- South Korea's fiscal status remains in relatively better shape than other advanced and emerging economies despite increased state-led spending and a reduced tax base, with the country likely to post a fiscal surplus in 2014, a report said Thursday.
According to the report by the International Monetary Fund (IMF), South Korea's
fiscal deficit will account for 3.2 percent of gross domestic product (GDP) this
year and rise to 4.3 percent next year, but its fiscal balance will turn to black
in 2014 with a surplus amounting to 2.1 percent of GDP.
Saudi Arabia, Russia and Canada, along with South Korea, were among the few
members of the group of 20 emerging and advanced countries whose fiscal balances
are expected post a surplus in the cited year.
The data suggests that the Seoul government may not be able to avoid a shortfall
in the short term due to a series of stimulus measures including tax reductions
and an additional budget aimed at resuscitating the slumping economy, but that by
2014 it will turn to black on the premise that the economy will rebound, experts
say.
South Korea's 2009 fiscal balance was also expected to be better than other major
G20 countries. Saudi Arabia, Indonesia and South Africa are the only countries
that are forecast to maintain better fiscal balances than South Korea this year,
according to the report.
The IMF report comes after efforts by the Seoul government to stimulate the
slumping economy with diverse tax cuts and additional fiscal spending as the
global recession dents the nation's export-driven economy.
In April, the parliament passed an extra budget worth nearly 30 trillion won,
helping to speed up the government's bid to revive the sagging economy. The
additional spending, to be secured primarily through debt sales, raised concern
that it could hurt the nation's fiscal soundness.
The Seoul government has frequently said that it will continue its "expansionary"
macroeconomic policy stance to help speed up an economic recovery.
The IMF earlier revised up its 2009 growth outlook for South Korea, forecasting
Asia's fourth-largest economy will shrink 1.75 percent compared with its earlier
projection of a 3 percent contraction.
The upgrade was attributed to the government's "timely and comprehensive" efforts
to cope with an economic downturn.
