Korean economy on recovery track thanks to exports, consumption: govt. report
The South Korean economy will likely maintain its current recovery pace going forward on the back of strong overseas sales and rebounding private consumption, a government report said Friday.
"The South Korean economy has been maintaining an upturned pace on the back of brisk exports and recovering global demand, while private consumption made a turnaround from a long slump," the finance ministry said in its monthly economy assessment report. "Thanks to a rally in exports and increased government spending, the recovery pace is expected to continue."
The report, called "Green Book," is based on the latest economic indicators of such key factors as output, exports, consumption and corporate investment, which provide clues as to how the economy has been faring in recent months.
South Korea's exports have been on a steep upside cycle since November last year led by the spike in global demand.
Exports rose 7.1 percent in October from a year earlier despite a 10-day-long holiday, following a 35 percent on-year surge in the previous month, buoyed by stellar sales of semiconductors and petrochemical products.
Output in manufacturing and mining gained ground in September for three months in a row as increased exports fueled the production of vehicles and ships, and production of the service industry landed in positive terrain for four straight months.
Moreover, the demand side seemed to return to positive territory as retail sales expanded 3.1 percent on-month in September, swinging from a 0.9 percent fall in August, while facility investment also rebounded to rise 5.5 percent on-month.
The government said there are still lingering outside downward pressures, including trade issues with the United States and potential geopolitical risks centered on North Korea. (Yonhap)