ID :
23644
Fri, 10/10/2008 - 15:01
Auther :
Shortlink :
http://m.oananews.org//node/23644
The shortlink copeid
Global financial crisis fueling downward risks for S. Korea: gov't
SEOUL, Oct. 9 (Yonhap) -- The current global financial crisis is fueling downward risks for South Korea, which is experiencing a slowdown of its domestic economy despite solid fundamentals, the government said Thursday.
The Ministry of Strategy and Finance said in its "Green Book" that while consumer
prices are stabilizing and exports are growing at a brisk pace, overall domestic
conditions and worldwide financial uncertainties are likely to cast shadows on
the economy.
The monthly publication, which is a comprehensive evaluation of economic
indicators, said production output in August grew a mere 1.9 percent
year-on-year, while retail sales gained 1.5 percent on weak demand for durable
goods like autos and electronic goods.
It added that facility investments edged up 1.6 percent from a year earlier in
August as automakers and other transportation companies tightened their purse
strings.
Employment figures were also disappointing, with 159,000 new positions being
created.
The ministry said that other indicators like the leading economic composite index
and coincident composite index were down for the second month in a row, a clear
sign that consumers were pessimistic about both current and future economic
outlooks.
While exports were up 28.7 percent in the cited month vis-a-vis August 2007, a
surge in imports caused the current account balance to remain in the red at $4.71
billion, the ministry in charge of the country's economic policy stated.
On the up side, the report said that fuel prices dropped 5.1 percent, which marks
the second time the consumer prices have dipped compared to the month before.
"Every effort must be made to ensure that fallouts from the financial sector do
not lead to a contraction of the overall economy," a ministry official said,
adding that Seoul will do its utmost to stabilize inflationary pressure and
pursue policies that could help create more jobs and enhance growth potential.
Government sources have said that national growth may fall to the mid 4 percent
range from the earlier target of 6 percent, with some private think tanks
forecasting the GDP to slow to the mid 3 percent levels in 2009.
yonngong@yna.co.kr
(END)
The Ministry of Strategy and Finance said in its "Green Book" that while consumer
prices are stabilizing and exports are growing at a brisk pace, overall domestic
conditions and worldwide financial uncertainties are likely to cast shadows on
the economy.
The monthly publication, which is a comprehensive evaluation of economic
indicators, said production output in August grew a mere 1.9 percent
year-on-year, while retail sales gained 1.5 percent on weak demand for durable
goods like autos and electronic goods.
It added that facility investments edged up 1.6 percent from a year earlier in
August as automakers and other transportation companies tightened their purse
strings.
Employment figures were also disappointing, with 159,000 new positions being
created.
The ministry said that other indicators like the leading economic composite index
and coincident composite index were down for the second month in a row, a clear
sign that consumers were pessimistic about both current and future economic
outlooks.
While exports were up 28.7 percent in the cited month vis-a-vis August 2007, a
surge in imports caused the current account balance to remain in the red at $4.71
billion, the ministry in charge of the country's economic policy stated.
On the up side, the report said that fuel prices dropped 5.1 percent, which marks
the second time the consumer prices have dipped compared to the month before.
"Every effort must be made to ensure that fallouts from the financial sector do
not lead to a contraction of the overall economy," a ministry official said,
adding that Seoul will do its utmost to stabilize inflationary pressure and
pursue policies that could help create more jobs and enhance growth potential.
Government sources have said that national growth may fall to the mid 4 percent
range from the earlier target of 6 percent, with some private think tanks
forecasting the GDP to slow to the mid 3 percent levels in 2009.
yonngong@yna.co.kr
(END)
