South Korea’s domestic demand is gaining momentum as the positive effects of the extra budget start to materialize and nationwide promotional sales events prod people to spend more, the top economic policymaker said Wednesday, according to a report.
Yonhap reported that chairing a meeting of economy-related ministers in Seoul, Finance Minister Choi Kyung-hwan said private spending has recovered from the Middle East Respiratory Syndrome scare that crippled consumption and forced the government to downgrade this year’s growth target to 3.1 percent from 3.8 percent.
The contagious respiratory disease claimed 36 lives in the country and caused people to avoid densely populated places like shopping malls. The first patient was confirmed on May 20, with the last case being reported on July 4. Of the 186 confirmed cases, only one remains hospitalized at present, the report said.
“There has also been steady improvement in consumer and business sentiment that is raising the possibility of economic recovery for Asia’s fourth-largest economy,” he said.
The 11.53 trillion won ($10 billion) extra budget and nationwide sales events like Korea Grand Sale and Korea Black Friday have all contributed to propping up the market, he claimed. (khnews@heraldcorp.com)
