President Lee Jae Myung has pledged to reverse the downward trend affecting South Korea’s potential growth rate through proactive fiscal policy and productive financial measures.

The president made the promise Tuesday in his opening remarks at a Cabinet meeting, saying the potential growth rate has been declining steadily every time a new government takes office at the rate of about one percentage point per administration. 

Lee said his government must be the first to reverse the trend.

He highlighted recent positive economic indicators, noting that industrial production, consumption and investment all turned upward in July, and retail sales increased at the fastest pace in 29 months thanks to the government’s consumer coupons. 

The president said this demonstrates the positive effects of appropriate fiscal spending on the national economy.

But he warned that if the country does not raise the potential growth rate, which has fallen to the one percent range, the effects of any policy measures will inevitably be short-lived.

Lee then called on the government to swiftly establish and implement a comprehensive plan encompassing support for technological innovation, regulatory reform and industrial restructuring.