S. Korean gov't revises up 2010 growth outlook to 5.8 pct

15:53, June 24, 2010      

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The South Korean government revised upward its growth outlook for 2010 to 5.8 percent from its earlier forecast of 5.0 percent, reflecting the faster-than-expected economic recovery, the finance ministry said Thursday.

In its economic management blueprint for the second half of 2010, the Ministry of Strategy and Finance said the gross domestic product (GDP) growth will mark 6.3 percent for the second quarter on the back of base effects, slowing down from the year-on-year 8. 1 percent gain in the first quarter.

The growth trend, however, will be maintained at the current level in the second half, the ministry said, adding that the growth rate for the whole year will sum up to around 5.8 percent.

In terms of employment, the government predicted the total number of new jobs will increase to some 30,000, up from its earlier projection of 25,000.

As exports remain in a brisk condition thanks to strong demand for local semiconductor and automobiles, the current account surplus is likely to hover around 15 billion U.S. dollars, the government added.

Inflation, which has recently been garnering market attention, will be kept at the 3 percent level for the whole year, although the index may see a hike in the second half.

Based on the forecasts, the government said it will gradually normalize its stimulus package for the sake of inflation, employment, and financial market conditions.

The recent move contrasts with its long-held policy stance that the government will keep up its expansionary macroeconomic policies "for the time being."



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