South Korea's Finance Ministry on Thursday reduced its growth estimate as the deepening Eurozone debt crisis and weak global growth dampens export activity. In order to boost growth, the government today unveiled spending plans worth KRW 8.5 trillion.
Gross domestic product will grow 3.3 percent in 2012, less than a December estimate of 3.7 percent, the ministry said. It expects 4.3 percent expansion for 2013.
The government intends to raise fiscal spending by KRW 4.5 trillion through a state budget, while public funds and state firms will gain another KRW 4 trillion for spending, the ministry said.
Inflation for 2012 will be 2.8 percent, rather than an earlier projection of 3.2 percent, it said.
by RTT Staff Writer
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