Choo Kyung-ho "Economic slowdown faster than expected... Difficulties concentrated in first half of next year"

"Price Stability and Real Estate Risk Management Are Top Priorities Next Year"

Deputy Prime Minister for Economy Choo Kyung-ho is delivering opening remarks at the '2023 Economic Policy Direction Party-Government Council' held at the National Assembly on the 19th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kum Boryeong] On the 19th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated, "Recently, exports have turned to a decline, indicating that the economic slowdown is progressing faster than expected. Due to the global economic recession next year, our economy is also expected to experience a slowdown in growth, with difficulties expected to be concentrated especially in the first half of the year."

At the '2023 Economic Policy Direction Party-Government Consultation' held at the National Assembly that morning, Deputy Prime Minister Choo evaluated, "Our economy has maintained growth above potential levels and a lower inflation rate compared to major countries, and the employment situation is relatively favorable in quantitative terms," before making this forecast.

He noted that amid ongoing uncertainties regarding interest rate hikes by major countries, difficulties in the real economy are becoming more pronounced, and volatility in financial markets is expected to continue for some time. Although inflation has peaked and upward pressure has somewhat eased, high prices are expected to persist for the time being, and the increase in the number of employed persons is projected to slow significantly due to base effects, according to Deputy Prime Minister Choo's outlook.

Deputy Prime Minister Choo said, "The government has prepared the 2023 economic policy direction with four key focuses under the goal of overcoming the crisis and achieving economic re-leap, with an even more urgent awareness next year," adding, "First, while prioritizing price stability for the time being, we will stably manage the macroeconomy through a tight policy mix that comprehensively considers macroeconomic conditions such as risks related to finance, corporations, and real estate."

He also plans to reduce the burden of prices and living costs and further expand jobs and social safety nets, while resolving difficulties in exports and investment through bold incentives and regulatory innovation.

He added, "We will accelerate structural reforms in labor, education, pensions, and other areas, while also focusing on mid- to long-term tasks such as preparing for future changes like population and climate, and balanced regional development."

Deputy Prime Minister Choo said, "Although the economy is expected to be more difficult next year than this year, I believe that if the government and people from all walks of life unite their efforts, we can overcome it," and "I ask the party and the National Assembly to also join forces in overcoming the current economic crisis, and I will listen carefully to the opinions of lawmakers and reflect them well in policies."

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