[Photo by Yoo Dae-gil = dbeorlf123@]
Yoo said in a meeting with economic ministers that the economy has lost steam with production and consumption declining while exports show no sign of improving, adding pressure on the government's welfare and job creation spending
"External factors including jitters in financial markets and the slowing down of the global economy have increased the uncertainties in the path of our economy," Yoo said.
"We cannot be optimistic about our current situation, but we must use positive signs as opportunities for a rebound."
The minister said he felt responsible for the country’s high unemployment rate, especially for graduating young adults, and the government would work hard to tackle the issue as a top priority.
The government will put its policy priority on job creation and newly create 350,000 jobs before this year is out, he said.
The youth jobless rate surged to an all-time high of 12.5 percent in February, with a total of 560,000 people aged between 15 and 29 out of work.
"Our tax revenue situation is improving somewhat, but we cannot be assured at this point due to heightening uncertainties in the global economy," Yoo said.
Key economic data showed manufacturing, consumer and trade conditions weakening this year. February's exports tumbled in their 14th consecutive month of declines, with the longest slump in the country's modern history.
The January industrial output fell 1.8 percent from December, far worse than a 0.5 percent gain for December. It was also the sharpest decline since a 3.5 percent drop in January 2015.
Last week Yoo said the government does not intend to add stimulus early in the fiscal year with an extra budget, although it has the budgetary means to do so if necessary
“We were aggressive in our spending by drawing up a supplementary budget last year but we do not feel that we need another one at this point," he said.
The Bank of Korea again kept interest rates on hold this month at a record low 1.5 percent, but analysts say the central bank are likely to cut rates in April or sometime later in the year.
By Alex Lee
reporter
Park Sae-jin
swatchsjp@ajunews.com
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