June 18, 2014 10:34
The Organization for Economic Cooperation and Development believes Korea's economy is sound enough to cope with possible downside risks.
In its biennial Economic Survey of Korea released on Tuesday, the OECD said, "The fiscal situation remains strong with a general government budget surplus in 2012 and gross debt of less than 35% of GDP," despite vulnerability to external risks, high household debts and rising inflation. "If downside risks materialize, Korea has scope to further relax monetary policy and implement short-term fiscal stimulus."
The last survey was out in April 2012, the latest one being the first since President Park Geun-hye took office.
As for Korea's macroeconomic prospects, the OECD forecast 4 percent growth for this year and 4.2 percent growth for the following year, saying the nation "has been among the fastest growing OECD countries during the past decade."
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