Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

발행물

Economic Trends

The Green Book: Current Economic Trends

Overview The recent Korean economy has continued growth momentum with the balanced growth of exports and domestic demand. Mining and manufacturing production recorded double digit growth of 10.8 percent in November 2007 fueled by sound exports and improved domestic indicators. In the meantime, service production expanded 7.8 percent, maintaining solid growth. Consumer goods sales growth moderated from 7.9 percent to 5.9 percent in November as durable goods sales growth slowed down to 10.0 percent from 21.9 percent due mainly to weak automobile sales (down 3.4%) while the trend growth sustained. Facility investment (estimated) in November expanded 3.9 percent in November, up from 3.3 percent in the previous month as machinery investment reversed course to post 1.8 percent growth from negative 0.7 percent growth despite the moderated growth of investment in transportation equipment from 14.9 percent to 10.4 percent. December exports surged 15.5 percent year-on-year to record US$32.25 billion on the back of the robust performance of petroleum products and liquid crystal devices. The current account surplus decreased to US$1.75 billion in November from US$2.46 billion in December as the goods and income account surplus narrowed and the service account deficit expanded. Consumer prices edged up 3.6 percent year-on-year in December, maintaining the 3 percent range growth for three consecutive months as cost factors such as rising oil prices and low yield of agricultural crops were fully reflected in prices. To sum up, the recent Korean economy has maintained its upturn trend in the second half of 2007 as expected, supported by solid exports and increased domestic demand. Exports have sustained double digit growth while private consumption has led robust domestic demand. Meanwhile, investment has shown modest recovery as the adjustment process in the third quarter came to an end. Nonetheless, as downside risks such as rising oil prices, slowing US economy, and concerns over global inflation remain, the macroeconomic policy needs to be managed in a stable manner to keep the growth momentum in check. * For further details, please refer to the attached file

Jan 2008