By Kang Yoon-seung
SEJONG, Oct. 5 (Yonhap) — Finance Minister Choo Kyung-ho expressed his belief that South Korea’s exports will recover this month, as recent data suggested a positive trend in outbound shipments of semiconductors.
“It is highly probable that exports will be on the rise in October, taking into account various production and shipment trends,” Choo told reporters. “It is also certain that exports will expand in November.”
Choo’s statement came in the wake of South Korea’s exports shrinking for 12 consecutive months in September, due to stringent monetary policies adopted by major economies to control inflation.
Nevertheless, the decrease in September was the smallest year-on-year decrease this year, declining by 4.4 percent, which gave rise to hopes that the trend would reverse in the near future.
Choo also maintained the 1.4 percent growth forecast for the fourth largest economy in Asia, which was reduced by 0.2 percent in July due to the weak performance in the first half.
“Overall, it is evident that the South Korean economy is in a better situation in the second half compared to the first,” Choo said. “However, there are still some uncertainties, such as prolonged high interest rates, economic slowdown in major countries, and the recent surge in oil prices.”
In relation to inflation, the finance minister noted that the government is “actively considering” extending the tax cut on fuel consumption for another two months owing to the rising global oil prices.
The government has been providing a 25 percent discount on gasoline and a 37 percent discount on diesel, both of which are due to expire this month, as part of its efforts to combat inflation and reduce financial burdens on the public.
Choo also urged the National Assembly to quickly pass the so-called fiscal rule, which involves limiting the fiscal deficit to 3 percent of the nation’s gross domestic product.
Finance Minister Choo Kyung-ho speaks during a meeting with reporters in the central city of Sejong on Oct. 5, 2023. (PHOTO NOT FOR SALE) (Yonhap)
colin@yna.co.kr
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