S. Korea`s Q2 growth to be revised up: finance minister

By Koh Byung-joon
SEOUL, Sept. 2 (Yonhap) -- South Korea's economic growth in the second quarter is
expected to have surpassed the central bank's earlier estimate amid mounting
signs a recovery is gaining momentum, the nation's top economic policymaker said
Wednesday.
In an advance estimate unveiled in July by the Bank of Korea (BOK), the nation's
gross domestic product expanded 2.3 percent during the April-June period from
three months earlier. The gain followed a 0.1 percent rise in the first quarter
and a 5.1 percent plunge in the final quarter of last year.
"The BOK earlier said that GDP grew 2.3 percent but upwardly revised figures will
be unveiled within a few days," Finance Minister Yoon Jeung-hyun told a
parliamentary economic seminar. He said that the expansion will likely be in the
range of 2.6-2.7 percent.
The minister also forecast that South Korea will be able to beat the government's
earlier projection of a $30 billion current account surplus for this year, saying
that the nation's cumulative surplus until July had already amounted to $26.2
billion.
His comments come as a series of indicators are buttressing optimism that the
Korean economy, Asia's fourth-largest, is pulling out of the worst downturn in
more than a decade on rebounding exports and consumption.
Industrial output grew for the first time in 10 months in July, indicating that
the economy might be bottoming out. Sales of consumer goods also rose 1.9
percent, marking the third straight month of on-year expansion, according to
government data.,
The upbeat data is fueling debate among experts and policymakers over when and
how to take back expansionary fiscal spending and eased monetary policies
introduced to bolster the slumping economy.
"We will stick to active fiscal spending policies until more signs of an economic
recovery materialize," Yoon said. "But we will keep a close tab on the recovery
pace so as to adjust the scale of fiscal spending."
Though Yoon said that South Korea's economic downturn is easing faster than other
countries, he pointed out that job markets remain a drag on the overall economy
despite state-led efforts to create working positions.
South Korea has been losing jobs this year as companies trim their recruitment
for fear that business conditions could deteriorate. The economy shed 76,000 jobs
in July compared with a year earlier.
kokobj@yna.co.kr
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