Korea frontloads expenditures to boost economy

72% of planned expenditures assigned in 1H13.

Korea’s Finance Ministry has announced that the government most of the money geared towards infrastructure projects and other job-creating endeavors, reports BBVA.

"Economic growth has slowed in 2012 (BBVA forecast: 2.3% for the full year after 3.6% in 2011), and Korea has warned that conditions will remain ‘difficult’ in 2013 (authorities recently lowered their growth target to 3.0% in 2013, from 4.0% previously). Subdued inflation (1.5% y/y) and weak exports (-5.5% y/y) in December have increased the likelihood of a rate cut by the central bank when it holds its next meeting on January 11th, in order to provide a further boost to growth," BBVA noted further.

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