South Korea sees 2017 growth at fastest in three years, pushes consumption and jobs

by Dramelin 10:00 PM 0 comments

South Korea raised its growth outlook for this year on Tuesday and vowed to maintain an expansionary fiscal policy that would support job creation.
The government projected economic expansion of 3 percent in 2017, the fastest since growth of 3.
3 percent seen in 2014.
The finance ministry`s latest outlook revised growth up from an earlier estimate of 2.
6 percent, and put it above the Bank of Korea`s forecast 2.
It sees improving global demand for South Korean goods supporting growth in the second half of 2017, along with increased fiscal spending from the 11 trillion won ($9.
85 billion) supplementary budget approved on July 22.
The ministry said the extra budget would lift growth by 0.
2 percentage point this year, although Nomura said the supplementary budget`s 0.
2 percent boost to GDP growth was already included in its estimate of 2.
The government sees exports surging 10.
2 percent this year, although private consumption is expected to grow at a slower 2.
3 percent because of waning job growth and record household debt.
"South Korea`s potential growth rate is around 3 percent.
As we noted earlier, posting 3 percent expansion looks achievable assuming the economy continues to undertake reforms for consumption-led growth," deputy finance minister Lee Chan-woo told an embargoed briefing.
"Going forward, our budget, tax and other policies will be reformed to better focus on creating jobs," Lee said.