This file photo shows a street in Myeongdong in Seoul on a rainy day on July 8, 2024. (Image courtesy of Yonhap)
SEOUL, Jul. 12 (Korea Bizwire) — The economic recovery in South Korea has strengthened on solid exports, the manufacturing sector, and domestic demand showing signs of recovering, the finance ministry said Friday.
The Ministry of Economy and Finance made the assessment in the Green Book, its monthly economic assessment report, while pointing to prolonged geopolitical risks and other global uncertainties.
“Economic recovery has gradually strengthened as the manufacturing sector and exports remain strong and there have been signs of recovery in domestic demand,” the report read.
The ministry has mentioned signs of domestic demand getting better since May.
But it noted that uncertainties linger in the global economy, as the recovery pace of major economies differs and geopolitical concerns continued over the Russia-Ukraine war and the Middle East crisis.
It also cited stronger trade regulations as a major headwind.
“The government will actively implement key policy measures to ensure price stabilization, support small merchants and boost domestic demand for the people’s livelihoods,” the ministry said.
Policy priority will also be on efforts to improve the quality of life and to push for a road map for a dynamic economy, it added.
Exports, a key growth engine, rose 5.1 percent on-year to US$57 billion in June, the ninth straight monthly gain, as chip exports surged 50.9 percent to reach an all-time monthly high, according to government data.
Retail sales, a gauge of private spending, shed 3.1 percent on-year and fell 0.2 percent on-month in May.
Industrial output fell 0.7 percent on-month, though it logged 2.2 percent growth from a year earlier,
Facility investment sank 5.1 percent on-year and declined 4.1 percent on-month.
It marked the first time in 10 months that the industrial output, retail and facility investment indexes all lost ground in an on-month term.
Consumer price growth, a key gauge of inflation, stayed below 3 percent for the third consecutive month in June to come to 2.4 percent in June.
The country is projected to reach the target rate of 2 percent by around the end of this year.
(Yonhap)
