SEOUL– Finance Minister Hong Nam-ki said Friday the South Korean economy will be able to grow in the 3-percent range as expected for this year despite the upsurge in COVID-19 cases and escalating tensions over Ukraine.
Hong made the remarks during a video conference with Anne Van Praagh, director of global strategy and research at credit appraiser Moody’s Investors Service, earlier in the day.
South Korea launched its annual consultations with Moody’s on Monday on the country’s economic conditions and policy. The consultation will run through next Monday.
Hong said Asia’s fourth-largest economy will be able to grow in the 3-percent range despite increased downside risks, including the COVID-19 pandemic and the geopolitical risk stemming from Ukraine, according to his office.
The government forecast the Korean economy to grow 3.1 percent this year after the 4 percent growth last year, on the back of solid exports and improving private spending.
“But the government will make all policy efforts as economic risks persist at home and abroad, such as rising inflationary pressure and the Ukraine crisis,” Hong added.
The government said it will provide trade financing to local exporters to help minimize potential economic damage from international sanctions against Russia over Moscow’s invasion of Ukraine.
He also said the country will spare no effort to strengthen its fiscal soundness as the national debt has risen at a fast pace amid expansionary fiscal spending.
Moody’s has maintained its credit rating on South Korea at “Aa2,” the third-highest level on the company’s table, since 2015, with a stable rating outlook.
Source: Yonhap News Agency