• 폰트크기작게
  • 폰트크기크게
  • TTS
  • 단어장
  • 기사스크립
  • SNS
2017-10-27 16:15
Korea’s gross domestic product expanded 1.4 percent in the third quarter from a year ago, surpassing most private economists’ expectations.

Barring unforeseen developments, the national economy will likely attain the government’s 3 percent growth goal this year, providing an impetus for President Moon Jae-in’s economic policy, called “J-nomics.”

Spearheading the highest growth in seven years were robust exports, mainly the shipments of semiconductors and cars, and shipbuilding, riding on overall vigor in the global economy. The Moon administration’s frontloading of the extra budget of 9.6 trillion won ($8.53 billion) also sped up the domestic recovery.

The better-than-expected July-September performance, the first report card of Moon’s economic team, will allow the President to push ahead with his economic pledge bolstered by four pillars – job creation, income (wage) led growth, fair competition and innovative expansion. If the chief executive thinks well begun is half done, he may be dead wrong, however.

On the flip side of the same coin, one can see the problems of the previous two administrations have not changed at all, namely the export-led, big business-oriented growth, and undue dependence on the international economic situation. Average working families don’t feel they are becoming better off, as shown by the negligible increase in private consumption and the sluggish jobs report. The quarterly performance was commendable in quantity but not so in quality.

Brisk exports, for example, may result from an optical illusion, like the luster of the semiconductor boom blinded policymakers in the lead up to the 1997 currency crisis. Moreover, China has almost caught up with Korea in the computer chip sector, boosted by several billions of dollars of investment in plants and equipment.

There are too many obstacles ahead to remain complacent _ the escalating military tension with North Korea, China’s economic retaliation against the deployment of a U.S. anti-missile battery here, rising trade protectionism, snowballing household debt and impending interest rate hikes.

No less worrisome is the possible anxiety among government economists to maintain the growth rate to help President Moon and his Democratic Party of Korea in next year’s local elections, using up all his policy tools.

The answer will lie in how to increase employment and income from a far more extended perspective, ensuring a more balanced and stable growth pattern.

 

  • 폰트크기작게
  • 폰트크기크게
  • TTS
  • 단어장
  • 기사스크립
  • SNS