The local economy remains on a “moderate” recovery path as domestic demand picks up and overall financial market conditions become stable, a state-run think tank said Thursday.

“The Korean economy is seen to continue at a moderate recovery pace, mainly on domestic demand,” the Korea Development Institute said in a monthly economic assessment report.

The report is based on the latest indicators for exports, consumption, investment, production and job creation.

The KDI said that consumption-related sentiment remained at a “relatively high level” and private consumption indicators also improved “gradually” in January.

Facility investment growth declined in January, but the think tank said that it remains on a “moderate recovery trend.”

Exports grew 1.6 percent on-year in February, turning around from a 0.2 percent fall a month earlier.

On the financial market, the think tank said uncertainties in emerging countries caused by the U.S. tapering have been easing. It added that the overall financial market conditions are becoming “gradually stable,” helping the Korean economy keep up its recovery momentum. (Yonhap)