[Pactcheck]President Moon "Best Growing and Most Positive"...Is it true?

By: queen [IP: 180.210.3.xxx]
Posted on: 2019-01-11 00:50:34
[King Sejong's reign = edaily choeungil the press] Moon Jae-in, the president plane “National maintains the highest level of economic growth, economic development.” to the news conference, 10 days.“We are already the polarization of wealth and economic inequalities are the world's most extreme, the Finns.” said. Is it true that President Moon's스포츠토토

diagnosis that the Korean economy has the best growth rate in the world but the polarization is the worst?



The outline is correct, but not 100%-factor. The Ministry of Strategy and Finance estimated Korea's growth rate of 2.6 to 2.7 percent last year. The figure is higher than that of major advanced countries. According to the International Monetary Fund's (IMF) forecast for 2018 growth, Germany's economy was 1.9 percent, France's 1.6 percent, Britain's 1.4 percent, and Japan's 1.1 percent. According to the OECD's November global outlook, Korea's growth rate was higher than Germany (1.6 percent), France (1.6 percent), Britain (1.3 percent), and Japan (0.9 percent).



However, the problem is the trend. This is because Korea's growth rate is dropping sharply. The IMF predicted that the global economic growth rate would be 3.7 percent from 2017 to 1919. On the other hand, it is estimating that South Korea's growth rate will be 3.1% in 2017, 2.8% in 2018 and 2.6% in 2019. In particular, Korea's growth rate last year is likely to be lower than that of the U.S. The IMF, OECD and World Bank all forecast that the U.S. will grow 2.9 percent last year.



Korea, which still has a long way to go, has a lower growth rate than the U.S. should not be taken lightly. Policymakers interpret this as a policy effect.



A high-ranking official of the Ministry of Finance said that the U.S. growth rate has increased due to the tax cuts and expansion of fiscal spending. The U.S. cut corporate taxes by passing a bill worth $1.5 trillion (1676 trillion KRW) at the end of 2017. On the other hand, Korea pushed for tax increases such as income tax, tax, and comprehensive real estate tax. The tax revenue target was 28 trillion won (2.4 billion dollars) more than the initial target of last year's.



The remarks about polarization of wealth and economic inequality are generally correct, but they are not correct. The level of polarization per country can be confirmed through the Gini coefficient of the Household Financing and Welfare Survey announced by the National Statistical Office, the Bank of Korea, and the Financial Supervisory Service last month. The Gini coefficient is a representative indicator of the degree of inequality in income distribution. This means that the bigger the figure, the more unequal the price is.



Korea's Gini coefficient for 2017 is 0.355 (based on equalized disposable income). According to the National Statistical Office, Korea's Gini coefficient is 31st among 35 OECD countries.



However, the U.S. (0.391), Turkey (0.404), Chile (0.454) and Mexico (0.459) were more unequal than Korea.



"It is true that Korea also has the worst inequality, but Mexico has the most inequality," said Park Sang-young, director of welfare statistics at the National Statistical Office.



Ironically, Korea's level of inequality has been seriously affected by the worsening employment index.



"Distribution has worsened last year due to sluggish employment and aging," said Hwang In-woong, policy planning director at the Ministry of Finance and Economy. The unemployment rate was the highest in 17 years since 2001 (4.0 percent). The youth unemployment rate of 15 to 29 years old was 22.8 percent last year, the highest since the statistics were compiled. "There are some effects of minimum wage," President Moon said on Monday. "We will make up for it."
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