Finance Minister Yoo Il-ho has expressed concerns about the economic situation amid challenges stemming from the spread of bird flu and the U.S. rate hike.

During a meeting between the government and the ruling Saenuri Party at the National Assembly on Friday, Yoo said sluggish domestic demand is worsening due to the avian influenza outbreak that has already surpassed the country's worst bird flu crisis in 2014. 

He said external economic conditions are also exacerbating in the wake of the U.S. Fed’s decision this month to raise its interest rate.

He said the government is aware of the grave economic situation, adding that it is working hard to keep internal and external risks under control while trying to stabilize the livelihood of the public.