Illustrative image (Source: Businesskorea.co.kr)Hanoi (VNA) –The Republic of Korea (RoK)’s government on July 25 raised the country’seconomic growth forecast by 0.4 percent to 3 percent as Asia’s fourth largesteconomy has been enjoying increased exports led by the global economicrecovery, Yonhap News Agency reported.
The Ministry ofStrategy and Finance said in a statement that a supplementary budget worth 11trillion KRW (9.87 billion USD) that will focus on job creation andsocial welfare expansion will helpthe economy to grow 3 percent in 2018.
Therefore, theeconomic growth outlook for 2017 and 2018 is slightly higher the rate of 2.8percent in 2015 and 2016, but lower than the figure of 3.3 percent in 2014.
Meanwhile, the International Monetary Fund(IMF) forecast that the RoK economy will gain 2.7 percent this year, and theOrganisation for Economic Cooperation and Development (OECD) expected2.6-percent growth, while Moody's revised its growth outlook to 2.8 percent.
The upward revision bythe RoK government came as exports, a key economic driver of the RoK, hasmaintained its growth for eight straight months thanks to the global boomingtrade and oil price hike.
Besides, otherpositive elements were the recovery of maritime transport services, demands andinvestment in RoK-made semiconductors in overseas markets and the country’sincreasing construction investment.
In addition, the improvedpolitical situation after President Moon Jae-in took office in May has also contributedto the positive economic revision.
The Ministryof Strategy and Finance said it will manage the growth paceof fiscal spending faster than that of nominal GDP in the coming five years inorder to play a stronger role in boosting the economy.-VNA
