South Korea’s Finance Minister Rules Out Further Extra Budgets

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1 / 3South Korea’s Finance Minister Rules Out Further Extra Budgets(Bloomberg) — South Korean Finance Minister Hong Nam-ki ruled out the need for a fourth extra budget this year and said that the economic shock from the coronavirus pandemic may have bottomed.South Korea’s economy can still avoid its first annual contraction in more than two decades if stimulus measures including a third supplementary budget submitted to parliament get carried out quickly enough to build on the momentum of improving exports and consumer confidence, Hong said in an interview with Bloomberg on Friday.“We are seeing signs of consumption and exports recovering from May,” Hong said in his Seoul office. “What’s more important than pouring out more measures and money is ensuring that the third extra budget and the series of measures taken in the first half feed through.”The government has so far pledged more than 270 trillion won ($225 billion), or roughly 14% of its gross domestic product, to support businesses and families hit by the pandemic. Though most economists expect South Korea’s GDP to contract this year for the first time since the Asian financial crisis in the late 1990s, Hong reiterated that the government’s 0.1% projection …

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