SEOUL, Oct 27: South Korea’s finance ministry said today that domestic consumption should continue to improve in the fourth quarter due to government measures, but exports were likely to remain weak.
“Exports are expected to continue suffering on falling oil prices and the slowing increase of global demand, including China,” the ministry said in a statement. Bank of Korea data showed last week exports fell 0.2 percent in the third-quarter in sequential terms, contracting for the first time in a year. Finance Minister Choi Kyung-hwan said earlier this month he expects exports to decline this year.
The statement on Tuesday said there would likely be no “spending cliff” like last year when the government ran into an unexpected tax revenue shortage, and that consumer and investment sentiment have been rising. It cited the Bank of Korea’s consumer sentiment index for October to back up its forecast, which rose to its highest level in five months this month. The ministry added it would focus its policies to bolster the recovery in consumption to make up for sluggish exports. (AGENCIES)
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