‘Global economic slowdown delays South Korean recovery’

September 3rd, 2012 - 1:15 pm ICT by IANS  

Seoul, Sep 3 (IANS) Global economic slowdown caused mainly by Europe’s fiscal crisis has been delaying South Korea’s economic recovery, the nation’s finance minister said Monday.

“Exports showed a minus growth for two straight months in August as the persistent European fiscal crisis caused economic sluggishness in the United States and China as well as the eurozone,” Finance Minister Bahk Jae-wan said in a meeting for economic revitalization.

Although some economic indicators showed better picture than market expected, the South Korea’s economic recovery was being delayed due to global economic slowdown, Xinhua quoted Bahk as saying.

The country’s exports tumbled 6.2 percent in August from a year earlier, after plunging 8.8 percent in July. Output in the manufacturing and mining sectors kept its minus growth for two months in a row in July as weak export demand weighed on the export manufacturing sector.

The minister stressed that boosting the private sector would be “the easiest and surest way” to revitalize the economy, urging government officials to make efforts for deregulation toward companies with a more open mind.

At the meeting, the finance ministry promised to minimize the introduction of new regulations that may weigh on the corporate management, saying that corporate taxes and electricity charges for industrial use would be kept at the current level as much as it can within this year.

To boost exports, the government planned to increase its guarantee on exports, while letting the state-run trade bank Export-Import Bank of Korea (Eximbank) offer more financing supports for exporters.

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