South Korea makes an economic bet on exports
2022.11.23 01:11
South Korea makes an economic bet on exports
Budrigannews.com – To combat slowing economic growth, South Korean President Yoon Suk-yeol stated on Wednesday that the government would assist businesses in promoting exports to crucial regions like Southeast Asia.
As domestic spending declines and global demand slows, the economy of South Korea is being hit harder by headwinds.
A media pool report said that Yoon told top export officials at a meeting, “We have to overcome the kind of complex global crisis that we are facing now through the promotion of exports.”
He added, “Private-sector businesses should receive full support from every government agency.”
At the meeting, the government didn’t set any specific export goals, but it said in a statement that the country should look into opportunities in places like the Association of Southeast Asian Nations (ASEAN).
South Korea’s manufacturing companies are moving production away from China, where costs are rising and growth is sluggish, to the 10-nation bloc, which is already the country’s second-largest trade partner.
The economy of South Korea is slowing down more quickly than thought, and domestic spending is now falling after a surge when COVID-19 curbs were lifted.
The Organization for Economic Co-operation and Development (OECD) decreased its estimate of South Korea’s economic growth for the upcoming year from 2.2% two months earlier to 1.8% in a global report that was released on Tuesday.
That would represent a decline from the expected growth of 2.7 percent this year and well below the ten-year average growth rate of 2.6 percent.
