South Korea's government on Wednesday promised policy support and deregulation to boost economic growth which it expects to slow next year at a much faster pace than expected previously.
The government predicted Asia's fourth-largest economy would see growth slowing to 1.6% in 2023 from an estimated 2.5% this year, more pessimistic than the central bank's forecast made in November for 1.7% growth.
Finance Minister Choo Kyung-ho told a news conference the lower growth forecast reflected the worsening global economic outlook. South Korea's export-driven economy is faced with cooling global demand after a wave of monetary policy tightening by major central banks and high inflation. The government promised to lower taxes and ease regulation on the property sector to ensure a soft landing., especially labour-management practices in a country with a long record of fractious industrial relations.
The government also said it would provide policy and financial support to bolster exports, predicting overseas sales would fall 4.5% next year after a 6.6% gain this year.
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