Economic and Finance Minister Namki Hong emphasized 'preemptive move' in this time of economic uncertainty and material supply crisis at a meeting with economic officials and experts held at the Government Complex Seoul on February 25. The attendees reviews on status of global economy, finance, foreign exchange alongside global security issues.
Hong pointed out power struggle between the US and Russia, supply risk and material price rise and subsequent global inflation which will keep marching forward and asked close monitoring and conservative approach to risk factors and take preemptive actions when necessary.
An official of the government said "The government has been working on economic security strategic meetings, supply task force and Ukraine response task force to monitor and act promptly and appropriately."
Hong talks with Praagh on national debt
Hong and Anne Van Praagh, Managing Director and Head of Moody's Credit Strategy &. Research, exchanged opinions about South Korean government's debt and credit rating.
Hong said "It is true that South Korea's debt has increased but the growth range is half that of advanced countries and therefore fiscal health is in a good condition considering the outlook of national debt and fiscal balance. However, the government is taking note of the speed of increase which is relatively faster than normal."
He added "The money must have been spent due to the pandemic but gradual recovery of global economy would bring it back to normal. Meanwhile, the government needs to steadily reduce the growth rate of total expenditure and reinforce tax revenue through tuning of tax free and exemption. It is notable that South Korea saw 4% economic growth last year through private consumption, export, investment and budget. We expect the GNI will be around $35,000 in 3 years while 370,000 more jobs were made in 2021. This year the government expects 3.1% economic growth."
Praah said "Moody's agrees South Korea's financial health is relatively in a good condition compared to leading countries. We will keep monitoring on policy direction and measures for increasing number of aged popularity in the nation alongside the ongoing Ukraine situations." <PowerKorea>
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