The South Korean Finance Minister Yoo Il-ho said Tuesday that the government will announce a package of fiscal policies that would sufficiently stimulate the economy in the second half amid growing concerns over further economic downturn, Yonhap reported. Asia’s fourth-largest economy has been in the doldrums since the beginning of the year as faltering exports, the key economic driver, weigh heavily on the entire economy, especially production. The latest data showed that South Korea’s industrial output fell 2.8% in April from a year ago, posting negative growth for the second consecutive month and widening its downward pace from March. Earlier this month, the Bank of Korea unexpectedly cut the key rate to a record 1.25% for the first time in 12 months in an apparent move to fuel economic growth in the coming months. “We are considering sufficient fiscal policies,” Yoo said in a Seoul meeting with financial businesses. “The government is making full efforts to revitalize the economy.”
