South Korean economy shows signs of recovery amid stable prices, robust exports
Date
8/18/2024 9:01:32 AM
(MENAFN) South Korea's finance ministry reported continued signs of economic recovery, attributing the positive trend to improving domestic demand and robust exports. The ministry's monthly economic assessment, the Green Book, highlights that while consumer prices remain stable, global geopolitical uncertainties pose ongoing risks. The report indicates that the Economy is rebounding due to stable consumer prices, strong export performance, a resilient manufacturing sector, and increased facility investment, which has spurred a gradual uptick in domestic demand. This positive trend in domestic demand has been evident for four consecutive months.
Globally, the economy also shows signs of improvement, particularly due to a strong manufacturing sector and vigorous exports, though the recovery pace varies by region. Despite this, geopolitical risks—such as the ongoing Russia-Ukraine conflict, tensions in the Middle East, fluctuating raw material prices, and concerns about a slowdown in major economies—continue to contribute to global economic uncertainty.
In South Korea, exports increased for the tenth consecutive month in July, driven by a strong semiconductor sector, with a notable year-on-year rise of 13.9 percent to USD57.4 billion. Consumer price growth remained below 3 percent for the fourth month in July, reaching 2.6 percent, and the government projects that the inflation rate will hit its 2 percent target by the end of 2024, though the decrease in prices may occur more slowly than initially anticipated. Retail sales saw a 1 percent increase month-over-month in June, boosted by higher demand for automobiles and durable goods, which rose by 5.2 percent. Additionally, investment in facilities grew by 4.3 percent in June following a previous decline of 3.6 percent in May.
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