South Korea's industrial production see 1.7 percent growth in 2024
(MENAFN) South Korea's industrial production experienced growth last year, driven by increased demand for semiconductors, although the country’s retail sales saw a decline amid a prolonged economic slowdown. According to economic data released on Monday, the contrasting trends highlight the mixed impact of global economic conditions on different sectors of the South Korean economy.
Data from the South Korean Statistics Office revealed that industrial output expanded by 1.7 percent in 2023 compared to the previous year. This marks the third consecutive year of growth in industrial production, indicating sustained resilience in the country’s manufacturing sector. The semiconductor industry, in particular, played a crucial role in driving this growth, as demand for chips remained strong in both domestic and international markets.
On the other hand, retail sales, a key measure of private consumption, declined by 2.2 percent year-on-year. The drop was primarily attributed to weaker demand for food and other non-durable goods, as consumers faced higher prices due to persistent inflationary pressures.
Looking ahead, fixed asset investment is expected to rebound in 2024, following a sharp decline in the previous year. According to the statistics office, investments in fixed assets are projected to increase by 4.1 percent year-on-year, driven by strong demand for machinery related to the semiconductor sector. This follows a 5.5 percent drop in 2023, when economic uncertainty led to reduced capital expenditures.
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