The South Korean economy begins to show signs of recovery

The ministry carried out an evaluation in its monthly economic report, called a green book. In addition to establishing data on internal recovery, it was noted that, however, the recovery path differs between sectors.

The Ministry of Economy and Finance indicated that signs of improvement in domestic demand were recorded for six consecutive months. Retail sales, considered an indicator of private spending, rose 1.7 percent month-on-month in August, and production in the services sector grew 0.2 percent month-on-month.

«The economy continues to show a recovery trend focused on exports and the manufacturing sector, amid the stabilization of consumer prices. “Domestic demand is also showing signs of gradual recovery, led by investment in facilities and the services sector, although the path differs between different sectors,” the report explained.

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Despite the positive change in recent months, on a year-on-year basis, retail sales fell 1.3 percent, due to weak demand for automobiles, electronics, mobile devices and other items. In addition, investment in facilities and construction decreased by 5.4 and 9 percent, respectively.

A ministry official mentioned that they have seen some mixed signals about domestic demand as, in September, credit card spending rose 4.6 percent year-on-year and vehicle sales grew 1.7 percent in the year. country. However, consumer confidence fell in that month compared to August.

According to government data, exports increased 7.5 percent year-on-year last month, to $58.7 billion. This marked the 12th consecutive month of increase, thanks to strong semiconductor exports.

Los consumer pricesa key barometer of inflation, rose 1.6 percent year-on-year in September, marking the lowest level since February 2021.

As major challenges, the South Korean Ministry of Economy and Finance cited concerns of an economic slowdown in major countries, as well as the volatility of raw material prices, amid prolonged tensions in the Middle East.