Скачать или смотреть Experts say measures to boost domestic demand is critical

Recent economic indicators released here in Korea are making many question... whether the economy is truly on track to recovery.
And many experts are urging the government to implement both short-and long-term measures to spur growth and re-invigorate domestic demand,... amid fear the economy might fall into a low-growth trap.
Hwang Ji-hye tells us more.
Earlier hopes the Korean economy will settle into a firm period of recovery were dashed by April's ferry disaster, which made a massive dent in domestic spending.
As a result, private institutions have slashed their growth forecasts.
Now... economists are asking a new economic team, to be led by the incoming finance minister, to use all the fiscal and monetary policies at their disposal to spur growth.
They say... the government should pump money into the economy to help it escape from a low-growth trap,... although that could lead to a fiscal deficit.
They say a cut to the key interest rate could also be an option,... if the pace of recovery continues to remain sluggish.
While Korea's traditional growth engine is exports,... analysts say... the government should lay out measures to boost domestic demand... and improve the livelihoods of ordinary people.
Some recent economic data has left some questioning whether Korea is truly in a recovery phase.
The nation's output across all industries fell for two straight months in May,... while the output in the manufacturing and mining sector dropped 2-point-7 percent last month from a month ago.
That marked the biggest drop since December 2008... at the height of the global financial crisis.
Hwang Ji-hye, Arirang News.