Hong Nam-ki: "Economic Recovery Gains Strength, Green Light for 4.2% Growth Achievement"

Important Economic Trends in the Second Half of the Year... Focus on Rising Inflation

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is announcing the 2022 budget proposal and the 2021-2025 National Fiscal Management Plan at the Government Seoul Office in Jongno-gu, Seoul on the 31st. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, evaluated on the 2nd, "It practically shows that among the eight advanced countries within the top 10 global economies, the recovery speed is the fastest."

Deputy Prime Minister Hong stated through his social networking service (SNS) immediately after the Bank of Korea's announcement of the preliminary domestic gross domestic product (GDP) on the 2nd, "The upward revision of the preliminary figure means that we have taken one step closer to achieving this year's 4.2% growth target."

According to the Bank of Korea's '2021 2nd Quarter National Income (Preliminary)' released that day, the real GDP in the second quarter of this year increased by 0.8% compared to the previous quarter. This was revised upward by 0.1 percentage points from the flash estimate of 0.7%.

However, Deputy Prime Minister Hong emphasized the need to pay attention to the economic improvement trend in the second half of the year.

He said, "The government is taking seriously the current situation where the economic improvement trend up to the second quarter is unlikely to continue into the second half," adding, "This is because the fourth wave of COVID-19 and strengthened quarantine measures that appeared in July raise concerns about the economic ripple effects due to mobility and gathering restrictions, and the endurance limits of self-employed and small business owners are also increasing."

He added, "The consumer price index in August also recorded 2.6% following July, driven by increases mainly in agricultural, livestock, fishery products, and petroleum products, which makes it impossible to let our guard down even for a moment."

Finally, Deputy Prime Minister Hong said, "This year's economic recovery and growth depend on the adjustment range in the third quarter and the degree of economic rebound in the fourth quarter," emphasizing, "Therefore, the period from now until the end of the year is very important."

This content was produced with the assistance of AI translation services.