Growth Rate Will Be Reduced To 4-5 Pct

The government adjusted the economic growth rate of this year to 4-5 percent, reduced from the earlier estimation of 5-6 percent. In addition, if the recovery of the U.S. economy delays, under 4 percent growth rate is anticipated.

Jin Nyum, deputy Prime Minister and Minister of Finance and Economy, reported the adjusted rate to the President at the Cabinet meeting yesterday.

The Ministry of Finance and Economy will maintain about 3 percent of the unemployment rate as it was planned but adjusted the goal of the customer inflation rate from 3 percent to 4 percent.

The current account surplus is anticipated to increase up to 11 billion dollars from the previous estimate 5 - 7 billion dollars.

The government adjusted the two major macroeconomics index, that are, the growth rate and the inflation rate, due to the delayed recovery of the U.S. economy in addition to the uncertainty in the economic situation of Japan and the EU member nations.

The government also increased the planned deficit rate of the combined fiscal balance to 1.0 percent from 0.1 percent of GDP, to catalyze the economic growth by circulating more money in the market.

The Ministry anticipated a cloudy weather in the economic situation of the second half of the year but positively expected the 5-6 percent of the growth rate, 3 percent of the customer inflation rate, and over 1 percent current account surplus of GDP in 2002.

Prime Minister Jin Nyum explained, ``the government will focus on strengthening the economic foundation and removing the uncertainty of the domestic economy in the operation of the Korean economy in the second half of this year, not being alternately happy and miserable at some macroeconomic indexes.``

In addition, the government will provide up to 3 billion dollars of foreign fund to stimulate the infra investment of the industries. And the government will recommend that the unionists accompany the company`s delegation for the introduction of the foreign capital.

Choi Young-Hae moneychoi@donga.com