Korea cuts this year's economic growth outlook to between 2.4% and 2.5%
- 5 years ago
Amid the ongoing trade tensions between the U.S. and China as well as poor chip sales,... concerns have been growing over the Korean economy... and the government has now slashed its growth forecast for this year.
Our Ko Roon-hee starts us off.
The South Korean government has cut its economic growth forecast this year to between 2-point-4 and 2-point-5 percent.
This is down from its previous forecast in December of between 2.6 percent and 2.7 percent.
When speaking to reporters in Seoul on Wednesday about the economic policy direction for the second half of 2019, Korea's finance chief Hong Nam-ki explained the difficulties that the nation is facing.
"Although we have been concentrating our efforts to boost the economy this year, along with shifting the economy's paradigm, an increase in uncertainties such as slower global economic growth and the U.S.-China trade dispute has led to difficulties."
Although the trade talks between the U.S. and China resumed after the G20 summit in Osaka, officials say uncertainties remain.
The fall in chip prices also contributed to the drop in economic growth.
Semiconductor shipments account for around one-fifth of Korea's exports... and lower demand is affecting the overall export figures.
The government forecasts exports to fall by 5-percent this year.
The other main economic indicators aren't looking positive either.
Private consumption is expected to grow this year by 2-point-4 percent... also down from its previous forecast of 2-point-7 percent.
The government says facilities investment and construction investment are both expected to drop this year...by 4-percent and 2-point-8 percent respectively.
Last December, the government announced that facilities investment was forecast to grow by 1-percent.
Consumer prices are expected to grow by 0-point-9 percent...which is significantly lower than the previous forecast of 1-point-6 percent.
But the situation looks brighter in the job market.
The government expects 200-thousand jobs to be created this year...up from the previous estimate of 150-thousand.
To turn things around, minister Hong again stressed the importance of the National Assembly quickly passing the supplementary budget bill and boosting the economy.
To achieve this, the government says increased investment is important...and promised to provide more tax incentives to companies.
Ko Roon-hee, Arirang News.
Our Ko Roon-hee starts us off.
The South Korean government has cut its economic growth forecast this year to between 2-point-4 and 2-point-5 percent.
This is down from its previous forecast in December of between 2.6 percent and 2.7 percent.
When speaking to reporters in Seoul on Wednesday about the economic policy direction for the second half of 2019, Korea's finance chief Hong Nam-ki explained the difficulties that the nation is facing.
"Although we have been concentrating our efforts to boost the economy this year, along with shifting the economy's paradigm, an increase in uncertainties such as slower global economic growth and the U.S.-China trade dispute has led to difficulties."
Although the trade talks between the U.S. and China resumed after the G20 summit in Osaka, officials say uncertainties remain.
The fall in chip prices also contributed to the drop in economic growth.
Semiconductor shipments account for around one-fifth of Korea's exports... and lower demand is affecting the overall export figures.
The government forecasts exports to fall by 5-percent this year.
The other main economic indicators aren't looking positive either.
Private consumption is expected to grow this year by 2-point-4 percent... also down from its previous forecast of 2-point-7 percent.
The government says facilities investment and construction investment are both expected to drop this year...by 4-percent and 2-point-8 percent respectively.
Last December, the government announced that facilities investment was forecast to grow by 1-percent.
Consumer prices are expected to grow by 0-point-9 percent...which is significantly lower than the previous forecast of 1-point-6 percent.
But the situation looks brighter in the job market.
The government expects 200-thousand jobs to be created this year...up from the previous estimate of 150-thousand.
To turn things around, minister Hong again stressed the importance of the National Assembly quickly passing the supplementary budget bill and boosting the economy.
To achieve this, the government says increased investment is important...and promised to provide more tax incentives to companies.
Ko Roon-hee, Arirang News.