Gov't lowers growth forecast to 2.9%, unveils economic policy plans
- 6 years ago
Our top story this morning...
The South Korean government has released its latest projections for the nation's economy.... and its economic policy plans for the latter half of the year.
The finance ministry on Wednesday cut its growth forecast for both 2018 and 2019.
As for its plans for the second half of the year,.. the government says it will create jobs, provide bigger tax credits to the low income bracket... and boost pensions.
Kim Hyesung reports.
The government has cut its growth forecast for 2018 to two-point-nine percent, down from its three-percent projection last December,...and in line with the Bank of Korea's revised growth forecast released last week.
At the same time, the government slashed its annual job growth estimates by around half....from 320-thousand to 180-thousand newly-added jobs, citing relatively low consumption and investment.
This comes after recent data showed that a monthly average of 142-thousand new jobs were added in the first half of this year, marking the slowest job growth since the 2008 global financial crisis.
"There's growing uncertainty in global trade and the financial market due to the U.S.-China trade spat and global monetary policy normalization. If we do not make efforts to solve the current situation, difficulties in growth and jobs will continue. Economic growth could slow down. Job growth and income distribution may not improve in the short term."
To help boost the local economy, Finance Minister Kim said the government will focus on job creation, income redistribution and regulation reform.
The government plans to increase fiscal spending by 4 trillion won, or about 3-point-five billion U.S. dollars within its existing budget by re-allocating money from some of its state-managed funds.
For an improvement in income-redistribution, the government will support low-income earners by expanding earned income tax credits and hiking the basic pension for the elderly in the bottom 20 percent income bracket.
Kim Hyesung, Arirang News.
The South Korean government has released its latest projections for the nation's economy.... and its economic policy plans for the latter half of the year.
The finance ministry on Wednesday cut its growth forecast for both 2018 and 2019.
As for its plans for the second half of the year,.. the government says it will create jobs, provide bigger tax credits to the low income bracket... and boost pensions.
Kim Hyesung reports.
The government has cut its growth forecast for 2018 to two-point-nine percent, down from its three-percent projection last December,...and in line with the Bank of Korea's revised growth forecast released last week.
At the same time, the government slashed its annual job growth estimates by around half....from 320-thousand to 180-thousand newly-added jobs, citing relatively low consumption and investment.
This comes after recent data showed that a monthly average of 142-thousand new jobs were added in the first half of this year, marking the slowest job growth since the 2008 global financial crisis.
"There's growing uncertainty in global trade and the financial market due to the U.S.-China trade spat and global monetary policy normalization. If we do not make efforts to solve the current situation, difficulties in growth and jobs will continue. Economic growth could slow down. Job growth and income distribution may not improve in the short term."
To help boost the local economy, Finance Minister Kim said the government will focus on job creation, income redistribution and regulation reform.
The government plans to increase fiscal spending by 4 trillion won, or about 3-point-five billion U.S. dollars within its existing budget by re-allocating money from some of its state-managed funds.
For an improvement in income-redistribution, the government will support low-income earners by expanding earned income tax credits and hiking the basic pension for the elderly in the bottom 20 percent income bracket.
Kim Hyesung, Arirang News.