PM expects economy to remain under pressure from high inflation, interest rates

February 1, 2023

SEOUL, Feb. 2 (Yonhap) — Prime Minister Han Duck-soo said Thursday the economy would stay under pressure from high inflation and interest rates for the time being, calling for measures to revive growth momentum and stabilize people’s livelihoods.

“The aftermath of high prices and high interest rates in the previous year will put strong pressure on our economy for the time being,” Han told a meeting on state affairs.

“The government will closely monitor internal and external economic conditions, and expand the momentum of stabilizing people’s livelihoods and revitalizing the economy,” Han said.

“We should focus our capabilities on innovation and make a rebound using the current adjustment process as an opportunity,” he said.

Han’s remarks came as Statistics Korea reported that consumer prices rose 5.2 percent on-year last month, compared with 5 percent growth estimated in December.

South Korea’s economy contracted 0.4 percent in the final quarter of last year, hit by weakening exports and consumption.

Han said exports and consumption could rebound in the second half of this year.