ID :
204078
Mon, 08/29/2011 - 07:00
Auther :
Shortlink :
https://oananews.org//node/204078
The shortlink copeid
(2nd LD) S. Korea could lower growth outlook for this year: minister
(2nd LD) S. Korea could lower growth outlook for this year: minister
(ATTN: ADDS details in 6-7th and last 2 paras)
SEOUL, Aug. 29 (Yonhap) -- South Korea could revise downward its growth outlook for this year, the nation's top economic policymaker hinted Monday, citing lingering uncertainties at home and abroad.
"Overall, there are downside risks (on growth)," Finance Minister Bahk Jae-wan told a forum held in central Seoul. "We stick to our growth outlook at this moment but I think we should make an accurate forecast again later."
His remarks come after the government revised down its growth projection for this year from 5 percent to 4.5 percent in June. The revision was announced along with its economic management plan for the second half of this year, which puts more focus on taming inflation.
"Our economy is expected to remain on a robust recovery track but it is true that downside risks increased," Bahk said.
"In particular, if the global economic recovery slows down and the instability in the financial market prolongs, it could also have a negative impact on our economy," he added.
Worries over a global double-dip recession mounted as outlooks for economic recovery in major advanced countries remain in doubt. Uncertainties in the global economy rose after the unprecedented downgrade of U.S. sovereign debts earlier this month. Last week, Moody's Investors Service also lowered ratings on Japan's debts.
After the forum, Bahk told reporters that his remarks do not indicate an immediate revision of growth rates but added that it is necessary to look into the possible impact of the recent moves by investment banks' and research institutes to lower growth outlooks for major economies.
Bahk still expressed optimism over inflation, saying that it seems possible to achieve the nation's annual inflation target of 4 percent for this year.
South Korea's consumer prices, a major gauge of inflation, jumped 4.7 percent in July from a year earlier, quickening from the previous month's 4.4 percent gain.
The government earlier worried that consumer prices could hit a yearly high in August mainly due to spiking prices of agricultural products. The minister last week said that the August inflation could be "higher than expected."
Bahk noted that the government can still achieve the 4-percent target if inflation stabilizes in the 3-percent range in September and stays at that level for the remainder of this year.
Meanwhile, he struck an optimistic note on the employment situation, saying that the government could surpass its projection of creating 330,000 new jobs this year.
The government will also be able to attain a US$16 billion current account surplus outlook for this year, he noted. Earlier, the central bank announced that the nation's cumulative current account surplus amounted to $13 billion in the first seven months of the year.
kokobj@yna.co.kr
(END)
(ATTN: ADDS details in 6-7th and last 2 paras)
SEOUL, Aug. 29 (Yonhap) -- South Korea could revise downward its growth outlook for this year, the nation's top economic policymaker hinted Monday, citing lingering uncertainties at home and abroad.
"Overall, there are downside risks (on growth)," Finance Minister Bahk Jae-wan told a forum held in central Seoul. "We stick to our growth outlook at this moment but I think we should make an accurate forecast again later."
His remarks come after the government revised down its growth projection for this year from 5 percent to 4.5 percent in June. The revision was announced along with its economic management plan for the second half of this year, which puts more focus on taming inflation.
"Our economy is expected to remain on a robust recovery track but it is true that downside risks increased," Bahk said.
"In particular, if the global economic recovery slows down and the instability in the financial market prolongs, it could also have a negative impact on our economy," he added.
Worries over a global double-dip recession mounted as outlooks for economic recovery in major advanced countries remain in doubt. Uncertainties in the global economy rose after the unprecedented downgrade of U.S. sovereign debts earlier this month. Last week, Moody's Investors Service also lowered ratings on Japan's debts.
After the forum, Bahk told reporters that his remarks do not indicate an immediate revision of growth rates but added that it is necessary to look into the possible impact of the recent moves by investment banks' and research institutes to lower growth outlooks for major economies.
Bahk still expressed optimism over inflation, saying that it seems possible to achieve the nation's annual inflation target of 4 percent for this year.
South Korea's consumer prices, a major gauge of inflation, jumped 4.7 percent in July from a year earlier, quickening from the previous month's 4.4 percent gain.
The government earlier worried that consumer prices could hit a yearly high in August mainly due to spiking prices of agricultural products. The minister last week said that the August inflation could be "higher than expected."
Bahk noted that the government can still achieve the 4-percent target if inflation stabilizes in the 3-percent range in September and stays at that level for the remainder of this year.
Meanwhile, he struck an optimistic note on the employment situation, saying that the government could surpass its projection of creating 330,000 new jobs this year.
The government will also be able to attain a US$16 billion current account surplus outlook for this year, he noted. Earlier, the central bank announced that the nation's cumulative current account surplus amounted to $13 billion in the first seven months of the year.
kokobj@yna.co.kr
(END)
