Korea's recovery momentum 'not strong enough': finance ministry
- 9 years ago
Korea's finance ministry says... the country's recovery momentum is NOT strong enough,... pointing to a need for more stimulus measures.
With the government pledging to pour money into the economy in the first half of this year,... all eyes are on whether the central bank... will cut its key rate.
Hwang Ji-hye has the details. Korea's major economic indicators were all down this year.
Output, consumption and exports all plunged,... while consumer prices would also have marked a drop... if it were not for a tobacco price hike.
The finance ministry is expressing concerns,... saying the country's recovery momentum is still weak.
It adds... that lingering uncertainties abroad... like a weak Japanese yen... and a possible rate hike by the U.S. Federal Reserve... also pose a threat to the domestic economy.
To prop up growth,... the government has announced a 9-billion U.S. dollar stimulus package for the first half of this year... and called on the corporate sector to raise their wage levels, which will in turn boost domestic demand.
Given the efforts made by the government,... market expectations are mounting for the central bank to cut its key rate in the coming months.
"There's a high possibility that the BOK will cut the rate in April as it revises down its growth outlook for the Korean economy."
The Bank of Korea will set its key rate for this month on Thursday.
Attention is now focused on the central bank's next move,... as the prospect of another rate cut also prompts concerns about the country's snowballing household debt.
Hwang Ji-hye, Arirang News.
With the government pledging to pour money into the economy in the first half of this year,... all eyes are on whether the central bank... will cut its key rate.
Hwang Ji-hye has the details. Korea's major economic indicators were all down this year.
Output, consumption and exports all plunged,... while consumer prices would also have marked a drop... if it were not for a tobacco price hike.
The finance ministry is expressing concerns,... saying the country's recovery momentum is still weak.
It adds... that lingering uncertainties abroad... like a weak Japanese yen... and a possible rate hike by the U.S. Federal Reserve... also pose a threat to the domestic economy.
To prop up growth,... the government has announced a 9-billion U.S. dollar stimulus package for the first half of this year... and called on the corporate sector to raise their wage levels, which will in turn boost domestic demand.
Given the efforts made by the government,... market expectations are mounting for the central bank to cut its key rate in the coming months.
"There's a high possibility that the BOK will cut the rate in April as it revises down its growth outlook for the Korean economy."
The Bank of Korea will set its key rate for this month on Thursday.
Attention is now focused on the central bank's next move,... as the prospect of another rate cut also prompts concerns about the country's snowballing household debt.
Hwang Ji-hye, Arirang News.