South Korea plans mini-stimulus to boost economic growth
On Thursday, the finance minister of South Korea told that his country has drastically raised its planned spending for 2016. The major purpose of this move is to jump-start the national economy and address risks to growth.
At the same time, South Korea’s major bank is going to keep its monetary policy flexible enough to support economic activity and also maintain financial stability.
For this year, South Korean authorities are going to spend up to 96.4% of its budget, up from the originally scheduled 95.9%.
South Korea has managed to avoid an abrupt downturn in its national economy via aggressive responses, though momentum in the private sector is still weak.
Additionally, the finance minister added that taxes accumulated this year have appeared to be quite satisfactory, given the government some scope to proceed with stimulus.
By the way, the government’s budget spending objective for the first half of the calendar year will be increased to 275.2 trillion won.