The South Korean government revised upward its growth outlook for 2010 to 5.8 percent from its earlier forecast of 5.0 percent, reflecting the faster-than-expected economic recovery, the finance ministry said Thursday.
In its economic management blueprint for the second half of 2010, the Ministry of Strategy and Finance said the gross domestic product (GDP) growth will mark 6.3 percent for the second quarter on the back of base effects, slowing down from the year-on-year 8. 1 percent gain in the first quarter.
The growth trend, however, will be maintained at the current level in the second half, the ministry said, adding that the growth rate for the whole year will sum up to around 5.8 percent.
"Summing up all the data from international organizations, financial institutions, and industry circles, we have reached a consensus that (a growth rate of) 5.8 percent will be met if there is no uncertainty," Finance Minister Yoon Jeung-hyun told a press conference on the background of the revision.
Despite the rosy outlook, the minister stressed that it was only a forecast, not a goal, allowing for some leeway for changes in the future.
In addition to the growth outlook, the government also presented optimistic forecasts for other economic indices, adding to market expectations that a shift in the macroeconomic policies may come in the second half./.