RTTNews - Wednesday, South Korea's Finance Minister Yoon Jeung-hyun said it is premature to talk about ending expansionary policy as uncertainties continue.
In a meeting with business executives, Yoon said, Currently, there is a need to prepare for the shift by focusing on how to exit, but it is premature to talk about when to shift such policies into a tightening stance, the Yonhap News Agency quoted.
Moreover, the minister said South Korea will likely achieve its economic growth target this year. The government predicted in June that Asia's fourth-largest economy may contract 1.5% this year on massive stimulus measures, slower than the 2% shrinkage forecast previously.
In the second quarter, gross domestic product or GDP grew 2.3% sequentially, faster than the 0.1% growth in the first quarter.
Earlier this month, the International Monetary Fund raised its economic outlook for South Korea for the second time in two months. The IMF forecast the economy to shrink 1.8% in 2009 and recover with a 2.5% growth in 2010.
In July, the Bank of Korea also revised its outlook for the economy to show a contraction of 1.6% for this year instead of a 2.4% GDP decline estimated earlier. The economy is expected to rebound in 2010 to show 3.6% growth.
Yoon reportedly said the economy is likely to grow 4% next year, in line with the global recovery and rebound in domestic demand. However, the sluggishness is expected to remain in the labor market.
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