SEOUL, Jan 4 (Reuters) - South Korea’s finance minister said on Wednesday it was time for government spending to be more actively deployed to boost growth as domestic demand and construction investment wane this year.
“It’s time fiscal policy plays a more active role,” Yoo Il-ho said in a meeting with other ministers in Seoul.
“Major private institutions are projecting low growth in the first half and high growth in the second, while recovery momentum is likely to weaken due to sluggish recovery in private consumption and construction investment.”
The governor of South Korea’s central bank said late last year the government’s planned spending of less than 400.5 trillion won ($332.09 billion) budget for 2017 was low compared to projected state income. ($1 = 1,206.0100 won) (Reporting by Cynthia Kim; Editing by Eric Meijer)