S. Korea to keep stimulus policy amid lingering uncertainties

SEOUL, Nov. 5 (Yonhap) -- South Korea's economy is making a
"better-than-expected" recovery but uncertainties remain, a government report
showed Thursday, reaffirming that the nation will keep its expansionary
macroeconomic policy down the road.

"Indicators are showing that production, private consumption, investment and
exports are all rebounding faster. And the nation posted better-than-expected
growth in the third quarter," the Ministry of Strategy and Finance said in a
report.
"However, uncertainties remain in relation to overseas economic conditions, so
South Korea will maintain its macroeconomic policy stance it has taken so far,"
it noted, adding that the government will try to use most of the state budget
assigned for this year in a manner that stimulates the economy.
The government assessment comes amid growing optimism that the economy might be
bottoming out and indeed may have already hit its lowest point amid improving
indicators.
South Korea has unveiled diverse economic stimulus measures including expanded
fiscal spending, tax cuts and sharp interest rate cuts aimed at bolstering
domestic demand and kick-start the sluggish economy.
According to the nation's central bank, gross domestic product grew 2.9 percent
in the third quarter from three months earlier, a marked turnaround from a 5.1
percent plunge in the final quarter of last year, just after the nation's economy
was hurled into chaos amid global financial turmoil.
kokobj@yna.co.kr
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