Economic indices are still showing signs of instability, even after the key rate cut by 0.5 percentage points and investment of 41 trillion won (US$37 billion) in the second half of last year. Under the circumstances, some experts are calling for the government to come up with additional stimulus measures.
According to the Korean government, Korea’s overall industrial output increment reached -1.7 percent in January this year, after a 1.3 percent growth in the preceding month. In particular, that of the mining and manufacturing industries fell from 3.45 percent to -3.7 percent during the same period, while that of the service sector dropped from 1.0 percent to -0.4 percent between the last quarter of 2014 and Jan. 2015. The rate of increase in domestic sales and capital investment fell from 1.5 percent to -3.1 percent, and from 1.9 percent to -7.1 percent between December and January, respectively.
In the meantime, Deputy Prime Minister Choi Kyung-hwan said on Mar. 2 at a National Assembly committee meeting that 68 percent of this year’s budget would be spent before the end of the first half so that the domestic demand can be boosted.