ID :
206739
Tue, 09/13/2011 - 06:25
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Shortlink :
https://oananews.org//node/206739
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Finance minister hints at lowering 2012 growth target
SEOUL (Yonhap) - South Korea's finance minister has signaled that the government may consider lowering its forecast of the economy's growth rate for next year due to persistent downside risks.
Announcing its second-half macroeconomic management plan in June, the finance ministry had predicted that the economy, Asia's fourth-largest, would likely grow 4.8 percent in 2012. The ministry projected a 4.5 percent growth rate for this year.
"The growth prediction could change when the government submits its 2012 budget plan to parliament," Finance Minister Bahk Jae-wan said in a recent interview with Yonhap News Agency. "It is so evident that there exist downside risks."
His remarks are seen as hinting that the ministry could revise its growth forecast for next year to the mid 4-percent range.
"After scrutinizing downside risks, the ministry will unveil the closest growth target as possible when it presents the budget plan to the National Assembly late this month," the minister said.
But Bahk, who marked his 100th day in office last week, failed to elaborate on what types of downside risks the South Korean economy faces.
Touching on the government's macroeconomic policy tack, the minister said he will continue to put top policy priority on taming inflation and creating more jobs.
"However, the most serious concern is that it is not certain to what extent the global fiscal crisis will have an impact on the real sector of the world economy," he said.
Some watchers construed his comments as hinting that the ministry may shift the focus of its macroeconomic policy to bolstering economic growth from inflation control.
South Korea has been dogged by persistently high inflation this year. South Korea's consumer prices jumped 5.3 percent in August from a year earlier, the fastest pace in three years and up from a 4.7 percent gain in July.
August also marked the eighth straight month that the consumer price hike has surpassed the government's annual inflation target of 4 percent for this year.
Meanwhile, Bahk said finance ministers from the Group of 20 nations will hold a meeting on Sept. 22 in Washington to discuss ways of achieving a balance between fiscal soundness and growth promotion.
The meeting will be held on the eve of the start of the annual conference of the International Monetary Fund and the World Bank.
Announcing its second-half macroeconomic management plan in June, the finance ministry had predicted that the economy, Asia's fourth-largest, would likely grow 4.8 percent in 2012. The ministry projected a 4.5 percent growth rate for this year.
"The growth prediction could change when the government submits its 2012 budget plan to parliament," Finance Minister Bahk Jae-wan said in a recent interview with Yonhap News Agency. "It is so evident that there exist downside risks."
His remarks are seen as hinting that the ministry could revise its growth forecast for next year to the mid 4-percent range.
"After scrutinizing downside risks, the ministry will unveil the closest growth target as possible when it presents the budget plan to the National Assembly late this month," the minister said.
But Bahk, who marked his 100th day in office last week, failed to elaborate on what types of downside risks the South Korean economy faces.
Touching on the government's macroeconomic policy tack, the minister said he will continue to put top policy priority on taming inflation and creating more jobs.
"However, the most serious concern is that it is not certain to what extent the global fiscal crisis will have an impact on the real sector of the world economy," he said.
Some watchers construed his comments as hinting that the ministry may shift the focus of its macroeconomic policy to bolstering economic growth from inflation control.
South Korea has been dogged by persistently high inflation this year. South Korea's consumer prices jumped 5.3 percent in August from a year earlier, the fastest pace in three years and up from a 4.7 percent gain in July.
August also marked the eighth straight month that the consumer price hike has surpassed the government's annual inflation target of 4 percent for this year.
Meanwhile, Bahk said finance ministers from the Group of 20 nations will hold a meeting on Sept. 22 in Washington to discuss ways of achieving a balance between fiscal soundness and growth promotion.
The meeting will be held on the eve of the start of the annual conference of the International Monetary Fund and the World Bank.
