 |
Wages not keeping pace with growth, he says
South Korea’s Finance Minister Kwon O-kyu made comments on October 20 that suggested the nation’s economy is virtually in recession. The minister also said that he plans to fully implement the national budget in order to to resuscitate the economy. "This year, South Korea’s economy will grow by 5 percent, but due to worsening trade conditions, growth in GNI [gross national income] will only be at 1.5 percent," he said at a lecture held in Seoul. His comments mean that such factors as rising oil prices would damper the growth in livelihood of South Koreans, with wages and goods produced not keeping pace with economic growth. He acknowleged the difficult situation of the economy by using the words "virtual recession." Kwon also painted a bleak outlook for the future. "In the first quarter, economic growth was 5.1 percent, which is forecast to decline to 4.6 percent and 4.0 percent in the second and third quarters...Things will get tougher down the road."Kwon said that the government needs to advance the implementation of the national budget and increase investment in the public sector, such as in construction. "[After hitting bottom in the first half], the economy is forecast to grow 4.6 percent next year, with GNI growth forecast to rise to over 3.6 percent," Kwon said.
