[THE INVESTOR] Korea has cut its annual economic growth rate outlook in 2016 to 2.8 percent from the previous 3.1 percent, the government said on June 24.
During a meeting with the ruling Saenuri Party, government policymakers said growth is expected to slow in the second half of 2016.
“If the second-half economic policy plan is executed as expected, this year’s growth will decrease from initial 3 percent-level to around 2.8 percent,” a government policymaker said.
Finance Minister Yoo Il-ho at a meeting with the ruling Saenuri Party Park Hae-mook/The Investor
The revision came as the country suffers from sluggish global economic conditions and troubles facing certain industries.
“We are now mapping out the second-half economic policy plan focusing on cushioning the fallout from corporate restructuring and creating more jobs,” Finance Minister Yoo Il-ho said on June 22.
Policymakers said every effort will be made to revitalize growth so Asia’s fourth largest economy can pull off 3 percent growth next year.
Nationwide corporate restructuring is underway in the troubled shipbuilding and shipping sectors, with industry watchers predicting shipyards will lay off thousands of workers and the closure of struggling subcontractors.
By Park Han-na (
hnpark@heraldcorp.com)