Global investment bank Morgan Stanley projected that our government will prepare a supplementary budget of up to 35 trillion won for the third quarter of this year.
Kathleen Oh, an economist, noted in a report released on the 7th that "fiscal policy will come into focus after the presidential election scheduled for the 3rd of next month," presenting this outlook.
He predicted that the supplementary budget plan of 13.8 trillion won, passed in the National Assembly's plenary session on the 1st, would correspond to 0.6% of the gross domestic product (GDP) and would raise this year's growth rate by about 10 basis points (1 basis point = 0.01 percentage point).
He added that "there may be room for the government to take over the baton of economic stimulus from the Bank of Korea and prepare a meaningful second supplementary budget in the third quarter," estimating that its scale could reach between 20 trillion and 35 trillion won. He viewed that this could have the effect of raising next year's growth rate by around 22 to 31 basis points.