Economic growth set for 3 percent
By Kim Yoo-chul
The economy is expected to grow 3 percent next year, with per capita income topping $30,000 for the first time ever, the government said Wednesday.
To attain the 3 percent economic growth target, the government will front-load a larger chunk of its budget expenditure in the first part of 2018. It will spend 59 percent of the budget in the first half and 34.5 percent of the job-related budget in the first three months.
Deputy Finance Minister Lee Chan-woo said the government will continue to push for "innovative growth" in 2018 by providing state support for smaller startups and promoting innovation in services and agriculture.
Korea's gross national income (GNI) topped $10,000 in 1994 and exceeded $20,000 in 2006. Last year, it was $27,561.
The government expects economic growth to come in at 3.2 percent this year. This will be the first time in seven years that the economy will record growth of over 3 percent for two years if the government achieve its target in 2018.
"We expect domestic demand to rebound next year, offsetting a slowdown in the growth of exports" said the deputy minister.
Domestic demand is expected to grow 2.8 percent next year, up from 2.4 percent this year. Export growth is forecast to slow to 4 percent from 15.8 percent.
The government said it will slash working hours next year, as part of its initiative for quality of life, and will seek to solve low birthrate and productivity problems.
Koreans worked 2,069 hours a year in 2016, the second-most among members of the Organization for Economic Cooperation and Development. That was more than the Americans and Japanese with 1,783 hours and 1,713 hours, respectively.
The government said it will extend the plan that offers up to 800,000 won in monthly subsidies for two years to an employee hired by a small- or medium-sized company.
By Kim Yoo-chul
The economy is expected to grow 3 percent next year, with per capita income topping $30,000 for the first time ever, the government said Wednesday.
To attain the 3 percent economic growth target, the government will front-load a larger chunk of its budget expenditure in the first part of 2018. It will spend 59 percent of the budget in the first half and 34.5 percent of the job-related budget in the first three months.
Deputy Finance Minister Lee Chan-woo said the government will continue to push for "innovative growth" in 2018 by providing state support for smaller startups and promoting innovation in services and agriculture.
Korea's gross national income (GNI) topped $10,000 in 1994 and exceeded $20,000 in 2006. Last year, it was $27,561.
The government expects economic growth to come in at 3.2 percent this year. This will be the first time in seven years that the economy will record growth of over 3 percent for two years if the government achieve its target in 2018.
"We expect domestic demand to rebound next year, offsetting a slowdown in the growth of exports" said the deputy minister.
Domestic demand is expected to grow 2.8 percent next year, up from 2.4 percent this year. Export growth is forecast to slow to 4 percent from 15.8 percent.
The government said it will slash working hours next year, as part of its initiative for quality of life, and will seek to solve low birthrate and productivity problems.
Koreans worked 2,069 hours a year in 2016, the second-most among members of the Organization for Economic Cooperation and Development. That was more than the Americans and Japanese with 1,783 hours and 1,713 hours, respectively.
The government said it will extend the plan that offers up to 800,000 won in monthly subsidies for two years to an employee hired by a small- or medium-sized company.
