정부, 2020 경제정책방향 발표...잠재성장률 회복 위해 100조원 규모 투자 Korea's GDP is expected to grow this year by 2 percent, held down by a slowing global economy and uncertainties like the U.S.-China trade war, which has hurt Korea's exports.
Fewer downside risks in 2020, though, so in its policy direction for next year, the government is expecting growth to rise.
Kim Hyesung reports.
The government's economic priority next year is to increase the recovery momentum.
While pushing forward with its three signature policies, namely inclusive growth, innovative growth and the establishment of a fair economy, the government aims to spur that growth by increasing investment and domestic demand.
Citing better global economic conditions like the U.S.-China phase one trade deal and upturn in chip prices, the finance ministry forecasts Korea to post economic growth of two-point-four percent in 2020, up from this year's 2 percent.
"Our number one priority is investment. The strength of investment will be key in determining the size of the economic rebound next year. We will invest a total of 86 billion U.S. dollars in the public and private sector."
Of the 86 billion dollars, about 60 percent will be public sector investment.
The government will also allocate 62 percent of its budget spending to the first half of 2020 to boost growth.
A three-point-eight billion dollar financing program will be created to support domestic private sector-led facility investment.
To increase construction investment, which fell 4 percent this year, the government will also expand social overhead capital projects and build more apartment blocks.
To help boost consumer demand, the government will grant tax cuts to people who are buying new cars to replace vehicles that are more than 10 years old.
As part of efforts to keep moving towards an inclusive society, the government will provide more support for people in the lower income brackets by increasing the basic pension and creating more jobs.
Lastly, the government vowed to accelerate the development of new industries like system semiconductors, biotech and future cars by providing tax benefits and easing regulations.
Kim Hyesung, Arirang News.
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