Korea targets 3.1％ growth in 2016

2016 경제정책방향 Economic Directive 2016 for details on what this country plans to do in the coming year on how to best run the economy... the specifics disclosed during today′s economic policy ministers′ meeting... Arirang′s economics corrspondent Hwang Ji－hye is in the studio with me. Ji－hye， let′s face it. The economy has a tough year ahead... various challenges stemming from both the domestic as well as global front... but it seems the government remains confident... as clearly reflected by the new growth forecast released today？ Korea expects its economy to expand 3－point－1 percent in 2016. That′s a trim from an earlier forecast of 3－point－3 percent，... but still higher than the mid－two－percent range... that a majority of private financial institutions have put forward. And to reach that rather optimistic target，... the economic management plan for next year focuses on pushing through structural changes to maintain the recovery momentum this year... that came on the back of expansionary fiscal and monetary policies. So， what kind of policies is the government endorsing or implementing to achieve economic growth？ The government will put emphasis on easing regulations to boost investment and come up with new growth engines. It will designate regulation－free areas in 14 different regions across the country... with the goal of fostering industries like bio－health， eco－friendly vehicles... and cosmetics. This project follows the state－driven program this year... to build 17 creative economy innovation centers around the nation. An expert I spoke to today says... such measures come as the country faces sluggish global demand， especially from China. ″Since it looks like it′s going to be difficult to see immediate improvements on the export front， the government is turning its focus to domestic consumption， and in order to do that， it needs to see more investment.″ Also on the agenda for next year is completing structural reforms in the labor， education， finance， and public sectors. But， some experts are skeptical as to whether the government will be able to push through such reforms with parliament still deadlocked over pending labor bills. ″Korea has general elections next year and the presidential election the year after. With political events like these， the government will face major opposition in completing the reforms， and they may lose steam.″ Another focal point included in the government′s new list of measures... is that the country′s economic growth will also be evaluated based on current prices？ The government will now offer not only the real GDP growth rate... but nominal growth figures as well... a move reflecting the government′s drive to keep better tabs on deflationary concerns. It also comes as the government aims to realize growth that can actually be felt by the public. ″The nominal growth rate has to remain at appropriate levels so that corporate sales and household income can rise. That will Visit ‘Arirang News’ Official Facebook Page https://www.facebook.com/newsarirang