KDI slightly lowers S. Korea's growth rate to 2% for 2019, calls for more expansionary fiscal policy
- 4 years ago
Amid concerns over a slowing economy,... a government think tank has slightly lowered its growth forecasts for the Korean economy for both this year and the next.
It has called for an expansionary fiscal policy to help revive the economy.
Yoon Jung-min reports.
South Korea's state-run research institute has lowered the country's growth rate for this year due to slowing investment and external risks.
The Korea Development Institute said on Wednesday that it has lowered South Korea's growth rate to 2 percent for 2019,... down zero-point-4 percentage points from its earlier forecast in May.
The institute said slowing investment has dragged down the manufacturing sector and private consumption.
Global downside risks include the U.S.-China trade war,... which has been hurting Korea's exports for 11 straight months.
The research institute has also cut the growth projection for next year to 2-point-3 percent,... down zero-point-2 percentage points from its earlier figures.
The institute, however, said domestic consumption and employment figures should pick up a bit next year.
It also said exports and facility investment are forecast to gradually recover based on growing demand for semiconductors.
"We have taken into account the likely demand for investment in key industries centered around semiconductors if there's a rise in demand overseas."
Despite a rather positive outlook for next year,... the KDI warned of uncertainties from the U.S.-China trade conflict, a possible no-deal Brexit, and tensions in the Middle East.
It has called for the government to maintain its expansionary fiscal policy and for the central bank to keep the economy healthy.
The institute also stressed the importance of shifting the economic structure toward future industries, such as artificial intelligence and autonomous vehicles.
Yoon Jung-min, Arirang News.
It has called for an expansionary fiscal policy to help revive the economy.
Yoon Jung-min reports.
South Korea's state-run research institute has lowered the country's growth rate for this year due to slowing investment and external risks.
The Korea Development Institute said on Wednesday that it has lowered South Korea's growth rate to 2 percent for 2019,... down zero-point-4 percentage points from its earlier forecast in May.
The institute said slowing investment has dragged down the manufacturing sector and private consumption.
Global downside risks include the U.S.-China trade war,... which has been hurting Korea's exports for 11 straight months.
The research institute has also cut the growth projection for next year to 2-point-3 percent,... down zero-point-2 percentage points from its earlier figures.
The institute, however, said domestic consumption and employment figures should pick up a bit next year.
It also said exports and facility investment are forecast to gradually recover based on growing demand for semiconductors.
"We have taken into account the likely demand for investment in key industries centered around semiconductors if there's a rise in demand overseas."
Despite a rather positive outlook for next year,... the KDI warned of uncertainties from the U.S.-China trade conflict, a possible no-deal Brexit, and tensions in the Middle East.
It has called for the government to maintain its expansionary fiscal policy and for the central bank to keep the economy healthy.
The institute also stressed the importance of shifting the economic structure toward future industries, such as artificial intelligence and autonomous vehicles.
Yoon Jung-min, Arirang News.