South Korea‘s economy is facing more “difficult and uncertain” factors this year as the eurozone debt crisis and other external challenges are expected to deteriorate, the top economic policymaker said Monday.
The government must beef up its contingency plans to better cope with any unexpected shocks from home and abroad, while strengthening its overall economic health, Finance Minister Bahk Jae-wan said.
“Last year, our economy went through one unexpected challenge after another,” Bahk told his staff and employees in his New Year’s speech. “This year will pose tougher problems. The economic conditions are expected to become difficult and uncertain.”
Bahk cited the eurozone debt crisis, among other things, as the reason for his gloomy outlook, saying that the fiscal problems in Europe could hit their worst point during the first half of this year.
He emphasized that the government must beef up contingency plans tailored for every conceivable situation in order to better cope with effects of the eurozone fiscal debt problems on the nation‘s economy.
The minister spoke about the two major elections scheduled for this year, and cautioned against any campaign pledges solely intended to cater to voters without thinking about fiscal soundness.
Faced with toughening economic times, he placed emphasis on securing sufficient fiscal capacity, calling for his employees to do their obligations as the guard for the national coffers.
He also reiterated that the government’s top policy priority for this year on easing inflation and generating jobs for low and middle income earners who have to bear the brunt of an economic slowdown.
