Fajarasia.id – South Korea’s government pledged strong support to exporters after he recorded the first economic contraction in two and a half years on Thursday, largely due to a fall in exports.
Finance Minister Choo Kyung-ho promised immediate support measures for exporters, including tax cuts and administrative support, apart from the slowdown in the economy as part of the global trend.
Gross domestic product (GDP) contracted he 0.4% from October to December in a row, according to central bank forecasts. Economists had forecast a 0.3% decline in a Reuters poll.
“The government will focus its policy resources on resuming exports and investment, including promoting deregulation efforts and providing financial and financial support,” Chu said at a press conference. The first contraction in GDP since the second quarter of 2020 saw exports fall by 5.8% and private consumption by 0.4%, while government spending surged by 3.2%, according to central bank estimates.
Markets have reacted mutedly to the data, largely in line with repeated warnings from governments and central banks in recent weeks.
But GDP data show the central bank’s rate hike on Jan. 13 marks the end of a 17-month tightening cycle, and the Bank of Korea (BoK) may even come under pressure to cut key rates this year. Enhanced emotions. to start.
“The impact of China’s reopening (due to coronavirus-related restrictions) will help, but exports will soon reverse due to weakness in other major economies,” said Park Sang-woo, economist at DB Financial Investments. I won’t,” he said.
The central bank estimates that by 2022, the annual value of Asia’s fourth-largest economy will be 2.6% higher than in 2021, which showed growth of 4.1%. The average annual GDP growth rate from 2017 to 2021 is 2.3% per annum. ****