[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]
Looking at South Korea’s latest economic data, there is no indication of an economic turnaround in the near future.
South Korea's exports fell for a 12th straight month in December, posting its worst yearly trade performance since the 2008-2009 global financial crisis. Industrial output recorded its worst decline in 10 months in November as slumping global demand hurt exports in Asia’s fourth-largest economy.
In his New Year message, finance minister Choi Kyung-hwan said on Monday that “we will face a more difficult environment in the new year. Global uncertainties are high due to low oil prices, higher U.S. interest rates and a slowdown in emerging economies.”
Choi also cited mounting corporate and household debts and a rapidly aging population as a major threat to the South Korean economy this year.
“The government will employ expansive macroeconomic policies and a deregulation drive to reinvigorate investment and private consumption,” said Choi.
He also said, "we should forge ahead with structural reforms aggressively and quickly and also come up with appropriate responses to risks as there will be uncertainties in global financial markets."
The finance ministry said in a statement last week that South Korea will l face low growth and low inflation in 2016.
The statement said it will be difficult for exports to rebound quickly due to sluggish growth in China, South Korea's biggest trade partner while consumption is being held back by structural restraints.
Low oil prices, slowdowns in China and other emerging economies and weakness in Europe sent global trade plunging this year, dealing a sharp blow to trade-reliant Asian countries which rely heavily on exports of manufactured goods.
South Korea's exports in December fell 13.8 percent from a year earlier while imports slumped 19.2 percent, the Ministry of Trade, Industry and Energy said on Friday.
Exports for all of 2015 dropped 7.9 percent - the worst since a 13.9 percent decline in 2009 - but are expected to rise 2.1 percent in 2016, the ministry said.
South Korea’s factory output in November fell a seasonally adjusted 2.1 percent from a month earlier, according to Statistics Korea.
November's fall was the worst since January. The finance ministry attributed the gloomy data to weak exports amid persistently bad external conditions.
President Park Geun-hye urged government officials last week to come up with strong measures to boost domestic demand.
By Alex Lee
reporter
Park Sae-jin
swatchsjp@ajunews.com
