In its biannual policy statement released last hour, the South Korean Finance Ministry cut its estimate for 2020 economic growth first set in early July.
Key Quotes:
It aims to lift economic growth to 2.4% next year from an estimated 2.0% rise this year. In July, it had forecast 2.6% growth for 2020.
Whereas we had to focus on defending the downward pressure in the second half (of this year), the priority next year will be lifting the recovery momentum.
it would allocate a record 62% of the total budgeted spending to the first half of 2020 to boost Asia’s fourth-largest economy as much as possible in its early stage of recovery.
It also plans to set up a 4.5 trillion won ($3.82 billion) financing programme intended to support private sector-led facilities investment at home, whose slump was one of the key constraints on growth this year.
It would draw up measures to grant tax cuts to buyers of new passenger cars to replace those made 10 years or more ago, and to buyers of hydrogen cars as part of measures aimed at boosting domestic consumption.”
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