S. Korean president confident about next year`s economy

SEOUL, Dec. 15 (Yonhap) -- South Korean President Lee Myung-bak on Monday spurned concerns that the country's economy may further recede into negative territory next year despite worries as the country reels from an ongoing global credit crunch.
South Korea, Asia's fourth-largest economy, has been struggling to overcome the
U.S.-sparked financial crisis, which has stunted overseas demand for the
country's exports and forced domestic companies to cut jobs.
The Bank of Korea last week estimated South Korea's economy will grow by 2
percent next year, a sharp reduction from the Lee government's earlier estimate
of 4 percent which was reflected in the 2009 budget.
"I believe we have managed to escape the worst phase of the financial crisis,"
Lee was quoted as saying by ruling party leader Park Hee-tae during their meeting
over breakfast. "The current account is expected to swing to a surplus next year.
Circumstances will take a positive turn if we manage to keep it that way."
Lee also said his government will run the economy next year under its
"optimistically" projected growth target of around 4 percent, adding that
adjustments will be made "if things get worse."
South Korea's current account posted its first deficit in 11 years in 2008 and
many economic experts here say the worst may be yet to come as the slowdown in
the country's real economy will begin in earnest next year.
hayney@yna.co.kr
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