| Finance Minister Choo Kyung-ho attends an emergency meeting at the Korea Federation of Banks in Seoul, Dec. 15. Yonhap |
Finance Minister Choo Kyung-ho said Thursday that the government will push for measures to overcome economic difficulties and promote a new growth engine as the economy is expected to further deteriorate next year.
"The economy is expected to be in bad shape for some time. Major institutions put our growth outlook at about the 1 percent range," Choo said in a meeting presided over by President Yoon Suk-yeol on the government's key policy tasks.
Late last month, the Bank of Korea lowered its growth outlook for next year to 1.7 percent from 2.1 percent predicted three months earlier.
The Asian Development Bank forecast the Korean economy to grow 1.5 percent next year, and the Organization for Economic Cooperation and Development put the figure at 1.8 percent.
"Export conditions are forecast to worsen, as the global trade volume is expected to fall next year, and the outlook for the semiconductor market is quite bleak," Choo said. "Strong and intense measures by the government for exports and investment are needed."
The minister also pointed to high inflation that has weighed down the economy, noting that prices are forecast to stabilize at around 3 percent in the latter half of next year.
"The government will strive to promote exports and stabilize prices and employment," Choo said. "We will push for a new growth strategy to leap forward after the crisis, as well as preparations for the future in the face of demographic and climate changes." (Yonhap)