The South Korean government has AGAIN cut its growth forecast for the economy this year.
The main problems are the fallout from the U.S.-China trade war... and poor sales of semiconductors, one of South Korea's main exports.
Our Ko Roon-hee reports.
The South Korean government has cut its economic growth forecast this year to between 2-point-4 and 2-point-5 percent.
This is down from its previous forecast in December of between 2.6 percent and 2.7 percent.
When speaking to reporters in Seoul on Wednesday about the economic policy direction for the second half of 2019, Korea's finance chief Hong Nam-ki explained the difficulties that the nation is facing.
"Although we have been concentrating our efforts to boost the economy this year, along with shifting the economy's paradigm, an increase in uncertainties such as slower global economic growth and the U.S.-China trade dispute has led to difficulties."
Although the trade talks between the U.S. and China resumed after the G20 summit in Osaka, officials say uncertainties remain.
The fall in chip prices also contributed to the drop in economic growth.
Breaking it down by major economic indicators, almost all growth forecasts for this year fell compared to the previous outlook.
For instance, private consumption is expected to grow this year by 2-point-4 percent... down from its earlier forecast of 2-point-7 percent.
And both facilities investment and construction investment are expected to drop this year.
To turn things around, minister Hong again stressed the importance of the National Assembly quickly passing the supplementary budget bill.
He added that as soon as the bill is passed, the government will execute more than 70-percent of the budget within 2 months.
The government says increased investment is important... and promised to provide more tax incentives to companies.
It also plans to help some companies with administrative procedures to push through some 6-point-8 billion U.S. dollars of large investment projects.
As for boosting consumption, the government aims to push for lower individual consumption tax for certain cars... and will help revitalize the local tourism industry.
Ko Roon-hee, Arirang News.
The main problems are the fallout from the U.S.-China trade war... and poor sales of semiconductors, one of South Korea's main exports.
Our Ko Roon-hee reports.
The South Korean government has cut its economic growth forecast this year to between 2-point-4 and 2-point-5 percent.
This is down from its previous forecast in December of between 2.6 percent and 2.7 percent.
When speaking to reporters in Seoul on Wednesday about the economic policy direction for the second half of 2019, Korea's finance chief Hong Nam-ki explained the difficulties that the nation is facing.
"Although we have been concentrating our efforts to boost the economy this year, along with shifting the economy's paradigm, an increase in uncertainties such as slower global economic growth and the U.S.-China trade dispute has led to difficulties."
Although the trade talks between the U.S. and China resumed after the G20 summit in Osaka, officials say uncertainties remain.
The fall in chip prices also contributed to the drop in economic growth.
Breaking it down by major economic indicators, almost all growth forecasts for this year fell compared to the previous outlook.
For instance, private consumption is expected to grow this year by 2-point-4 percent... down from its earlier forecast of 2-point-7 percent.
And both facilities investment and construction investment are expected to drop this year.
To turn things around, minister Hong again stressed the importance of the National Assembly quickly passing the supplementary budget bill.
He added that as soon as the bill is passed, the government will execute more than 70-percent of the budget within 2 months.
The government says increased investment is important... and promised to provide more tax incentives to companies.
It also plans to help some companies with administrative procedures to push through some 6-point-8 billion U.S. dollars of large investment projects.
As for boosting consumption, the government aims to push for lower individual consumption tax for certain cars... and will help revitalize the local tourism industry.
Ko Roon-hee, Arirang News.
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