Recovery prospects for 2020 Korean economy cannot be deciphered, fin min

2019.11.27 11:42:38 | 2019.11.27 13:23:17

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How fast the Korean economy will recover next year cannot be deciphered, given the uncertainties on both home and external front and potential downside risks, said Hong Nam-ki, South Korea’s deputy prime minister for economy and finance minister.

The Korean economy is mostly forecast to do better next year than this year’s 2.0 percent, and it is important to raise confidence to boost recovery momentum, Hong told heads of research institutes in a meeting on hearing their advices before devising economic policy for the coming year.

The government releases outline for policy measures for 2020 late December. The central bank issues next year’s growth outlook on Friday.

This year’s economy has suffered largely from “worsened external situations and growing uncertainties,” Hong said, adding that the global economy slowed down at a faster-than-expected pace and the country’s economy was mired in a deep slump hit by the flagging chip industry.

Given the fragile growth of 0.4 percent in the third quarter and a contraction in the first quarter, many predict the economy may not achieve 2.0 percent this year, which still would be the poorest growth after 2008-2009 financial crisis.

The government is relieved by the improvements in the job market and income distribution, he said.

He said next year’s economic policies would focus not only on improving growth pace but also strengthening fundamentals through structural reform to raise potential growth rate in the mid- to long-term.

By Pulse

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