Government mulls lowering growth outlook for 2014 as ferry disaster dents demandUpdated: 2014-06-09 06:27:27 KST
With April's deadly ferry disaster affecting the whole nation, the government is reviewing whether to adjust the economic growth outlook for this year.
The finance ministry said Sunday that it is assessing economic activity in the first half of the year as it reviews its predictions for the latter half.
The ministry is planning to release its economic policy direction for the second half of the year later this month.
The ministry says that its policies will focus on supporting the service sector and small businesses in light of the Sewol-ho ferry disaster.
The ministry's plans are expected to include tax breaks and employment subsidies, though the amount of support has not yet been determined.
The ministry says the measures will be geared toward boosting domestic demand and improving people's livelihoods.
The government last year predicted a growth rate of three.nine percent for this year.
However, a state-run research institute says it is highly unlikely the government can achieve that due to sluggish domestic consumption.
Last month, the Korea Development Institute, a government think tank, lowered its growth forecast to three.seven percent.
Connie Kim, Arirang News.
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