ID :
84340
Tue, 10/13/2009 - 11:49
Auther :
Shortlink :
https://www.oananews.org//node/84340
The shortlink copeid
S. Korean economy to grow 5 pct from 2011-2013: minister
By Koh Byung-joon
SEOUL, Oct. 12 (Yonhap) -- South Korea's top economic policymaker said Monday that the nation will be able to achieve its mid-term growth projection of around 5 percent, dismissing concerns that the government is painting too optimistic a view of economic conditions down the road.
Finance Minister Yoon Jeung-hyun also noted that the government will maintain its
expansionary macroeconomic policy stance until the economy makes a firmer
recovery, adding that an exit strategy aimed at taking back stimulus measures
should be developed in cooperation with the global community.
"We based the forecast on (factual) grounds and made it with confidence," Yoon
told lawmakers during an annual parliamentary audit. "Even the IMF and the OECD
make similar projections for our economy, showing that our outlook is based on an
objective assessment, not on figures resulting from armchair discussion."
The finance ministry earlier said that it will be able to achieve a 5-percent
expansion between 2011 and 2013. The projection is in line with the nation's
mid-term potential growth rate and is also higher than this year's negative 1.5
percent and plus 4 percent for next year.
South Korea's economy is showing signs of a faster-than-expected recovery as the
government-led stimulus measures seemed to help the country weather a steep
downturn caused by financial turbulence and resulting global recession last year.
In a report submitted for the audit, the ministry expected the Korean economy
will likely continue its improving trend in line with rebounding global economic
conditions, though there are still lingering downside risks such as rising crude
oil prices.
Yoon confirmed that the government will maintain its expansionary macroeconomic
policy stance "for the time being" until the economy is seen to be making a
firmer recovery.
The remarks come as South Korea's central bank recently kept its key interest
rate unchanged at a record low of 2 percent, dispelling speculation that it could
soon raise borrowing costs to stabilize property prices.
With increasing concerns over worsening fiscal soundness and a possible bubble in
the asset market, debate has been brewing over when and how to seek the so-called
exit strategy intended to withdraw emergency stimulus measures introduced by the
government and the central bank to ease an economic downturn.
In a recently-held annual conference of the International Monetary Fund and the
World Bank, member countries including South Korea agreed that exit strategies
should be developed in a concerted manner based on internationally agreed
principles.
During the audit, Yoon noted that the global cooperation does not mean that all
countries should withdraw stimulus measures "uniformly" and "at the same time"
but they will be prepared depending on conditions of each country.
Meanwhile, Yoon added that the nation's fiscal status remains in relatively
better shape than many other countries, though debts inevitably mounted in the
face of an "unprecedented" economic crisis but added that the government will
make efforts to achieve a balanced budget by its target year of 2013-2014.
kokobj@yna.co.kr
(END)
SEOUL, Oct. 12 (Yonhap) -- South Korea's top economic policymaker said Monday that the nation will be able to achieve its mid-term growth projection of around 5 percent, dismissing concerns that the government is painting too optimistic a view of economic conditions down the road.
Finance Minister Yoon Jeung-hyun also noted that the government will maintain its
expansionary macroeconomic policy stance until the economy makes a firmer
recovery, adding that an exit strategy aimed at taking back stimulus measures
should be developed in cooperation with the global community.
"We based the forecast on (factual) grounds and made it with confidence," Yoon
told lawmakers during an annual parliamentary audit. "Even the IMF and the OECD
make similar projections for our economy, showing that our outlook is based on an
objective assessment, not on figures resulting from armchair discussion."
The finance ministry earlier said that it will be able to achieve a 5-percent
expansion between 2011 and 2013. The projection is in line with the nation's
mid-term potential growth rate and is also higher than this year's negative 1.5
percent and plus 4 percent for next year.
South Korea's economy is showing signs of a faster-than-expected recovery as the
government-led stimulus measures seemed to help the country weather a steep
downturn caused by financial turbulence and resulting global recession last year.
In a report submitted for the audit, the ministry expected the Korean economy
will likely continue its improving trend in line with rebounding global economic
conditions, though there are still lingering downside risks such as rising crude
oil prices.
Yoon confirmed that the government will maintain its expansionary macroeconomic
policy stance "for the time being" until the economy is seen to be making a
firmer recovery.
The remarks come as South Korea's central bank recently kept its key interest
rate unchanged at a record low of 2 percent, dispelling speculation that it could
soon raise borrowing costs to stabilize property prices.
With increasing concerns over worsening fiscal soundness and a possible bubble in
the asset market, debate has been brewing over when and how to seek the so-called
exit strategy intended to withdraw emergency stimulus measures introduced by the
government and the central bank to ease an economic downturn.
In a recently-held annual conference of the International Monetary Fund and the
World Bank, member countries including South Korea agreed that exit strategies
should be developed in a concerted manner based on internationally agreed
principles.
During the audit, Yoon noted that the global cooperation does not mean that all
countries should withdraw stimulus measures "uniformly" and "at the same time"
but they will be prepared depending on conditions of each country.
Meanwhile, Yoon added that the nation's fiscal status remains in relatively
better shape than many other countries, though debts inevitably mounted in the
face of an "unprecedented" economic crisis but added that the government will
make efforts to achieve a balanced budget by its target year of 2013-2014.
kokobj@yna.co.kr
(END)
