Published : Oct. 11, 2016 - 11:11
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THE INVESTOR] Sluggish production and exports keep dragging down the South Korean economy to recover, according to a government report on Oct. 11.
“The economy has been on a flaccid recovery track as private consumption and investment have made a turnaround in recent months, but the production side and exports have still remained sluggish due to partial strikes at major carmakers,” the Finance Ministry said in its monthly economy assessment report called the “Green Book.”
On the bright side, retail sales rose 2 percent on-month in August, a turnaround from a 2.5 percent on-month drop in July, on the back of new smartphone releases and brisk sales of home appliances, such as air conditioners, in the wake of a sweltering heat wave in the summer period.
Facility investment turned around to gain 14 percent in August from July’s 11.7 percent fall, while construction investment continued its upbeat mode to post 3.2 percent growth in August.
Industrial output, however, backtracked 2.4 percent in August due mainly to partial strikes at major carmakers, including industry leader
Hyundai Motor, over demand for a wage hike and more benefit. Car production, in particular, tumbled 17 percent on-month over the same period.
The worldwide recall of
Samsung Electronics‘s Galaxy Note 7 also weighed heavily on the local chip industry, whose output fell 5.2 percent in August.
The country’s exports were also affected by the sharp drops in automobiles and semiconductors, retreating 5.9 percent in September from a year earlier.
(
theinvestor@heraldcorp.com)