South Korean minister for finance cautioned that hard and fast US China trade war would have troubling ramifications for the country.
The world’s eleventh biggest economy is relied upon to grow 2.9 percent this year, lower than a prior gauge of three percent, Mr.Kim Dong-yeon stated, refering to moderating interest at home and abroad and also rising unemployment, as he brought down the current year’s economic development standpoint.
The most recent gauge is additionally lower than a year ago’s figures, when the fare dependent economy extended 3.1 percent, and comes as the South’s main two exchanging accomplices China and the US take part in an unpleasant spat that has seen them force heavy taxes on billions of dollars in products.
“The economic situation down the road does not seem to be bright,” Kim told correspondents.
“The situation may get worse if anxiety in the international financial markets spreads due to the US-China trade dispute… and market and corporate sentiment does not improve,” he said.
Overseas shipments account for more than half of the South´s economy, with more than a quarter of exports shipped to China and about 12 percent to the US.
Kim vowed to “closely monitor international trade situations including the US-China trade row” and announced measures to encourage job creation and spur domestic spending.
US President Donald Trump has taken a confrontational “America First” stance on trade policy, imposing steep tariffs on steel and aluminum, which angered allies and prompted swift retaliation, as well as 25 percent duties on $34 billion of Chinese goods, with more on the way.
China has matched US tariffs dollar-for-dollar and threatened to take further measures, while US exports face retaliatory border taxes from Canada, Mexico and the European Union.
The International Monetary Fund said this week the growing trade confrontation is the “greatest near-term threat to global growth” and in the worst case could cut a half point off world GDP.