SEOUL, April 27 (Reuters) - South Korea’s economy is expected to grow about 5 percent in 2011, similar to this year, helped by a global economic recovery and higher domestic demand, the finance ministry said on Tuesday.
The government plans to reduce the fiscal deficit further next year from this year’s target of 2.7 percent of annual gross domestic product (GDP) and 4.1 percent of GDP in 2009, the Ministry of Strategy and Finance said.
“Exports are expected to remain healthy as the global economy is steadily recovering led by the United States and China” while domestic demand will maintain growth on stabilising financial markets and improving sentiment, the ministry said in a statement.
The ministry’s forecast is higher than the central bank’s expectation of a 4.8 percent expansion in 2011. (Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)