Seoul holds firm on GDP forecast that conflicts central bank's outlook

Seoul

SOUTH Korea's Finance Ministry plans to stick with its growth forecast for this year, putting it at odds with the central bank on the outlook for Asia's fourth largest economy.

The government stands by its December projection for gross domestic product (GDP) to expand 3.8 per cent in 2015, Vice-Finance Minister Joo Hyung Hwan said in an interview in Seoul. The differing views partly reflect a divergence of opinion on the likely impact of government policies, Mr Joo said on Jan 16, a day after the Bank of Korea (BOK) cut its estimate to 3.4 per cent.

"There are certain differences in terms of how these variables will affect consumption, investment and exports," said Mr Joo, referring to support measures from the administration of President Park G…