Probable Economic Growth of 6% This Year

The government decided not to change the basis of current macroeconomic policy as it forecasted the growth of 6% despite uncertain factors such as US economy unrest.

However, the government forecasts that the current account is likely to be worse owing to inactivity of the export trade and the sharp increase on the price of the real estates of Gangnam area Seoul may give a burden to the future economy operation. So, it plans to watch the future trend carefully.

The government collected these opinions after discussing the trend of recent economy in the Economic Ministers` Meeting held under the supervision of Jeon Yun-cheol the Deputy Premier and the Minister of Finance & Economy(MOFE) in the banker’s club, Myeong-dong Jung-ku Seoul on August 20.

The government concluded in the meeting that the recovery of US economy will not be possible to slump like the previous year and the influence on the Korean economy is restricted.

However, as a balance of service deficit has been expanded, the government planed to take measures because the surplus of current account is very likely to fall short of its expectation.

In ‘Meeting of Economic Trend’ held under the supervision of Park Seung the Governor of the Bank of Korea at that day, it was concluded that the recent business showed the slow increase tendency.

The measures must be taken such as decreasing of the household loan not to connect the recent increase of the real estate price to the general economic unrest.

Kwang-Hyun Kim kkh@donga.com