Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

발행물

Economic Trends

The Green Book: Current Economic Trends

Overview The Korean economy in early 2007 is assessed to stay in line with the projected economic trend of lower growth in the first half and higher in the second, despite temporary slowdown factors such as a partial strike by auto workers. The pace of growth of industrial output in January increased 7.4 percent, up 4.4 percent from 3.0 percent in December last year. It was largely attributable to the fact that Lunar New Year fell in February and days operated increased 1.5 days. However, the expansion was limited due to a partial strike by auto workers. Services went up 4.6 percent year-on-year in January on increased days operated. Consumer goods sales in January edged up on-year 3.1 percent indicating the continued adjustment period since the 3rd quarter of the previous year. Meantime, consumption on Lunar New Year holidays was deferred to February. Estimated facility investment surged 16.0 percent in January from the previous month on the back of investment expansion in computers and special industrial machinery. Construction completed climbed 13.3 percent. February exports maintained double-digit growth of 11.3 percent year-on-year despite the shortened days operated by 1.5 days with the Lunar New Year falling in the same month. During the January-February period, exports surged 16.0 percent. Still, January current account posted a deficit of US$510 million affected by widened services account deficit despite robust exports. Jobs growth registered 258,000 year-on-year in January, continuing the trend of hovering slightly below 300,000 from the second half of the previous year. February consumer prices stabilized within a 2 percent range backed up by stabilizing oil prices despite price rise of agricultural products affected by the Lunar New Year holidays. The Korean economy in 2007 is expected to expand a mid 4 percent provided external conditions do not deteriorate sharply. As for the quality of growth, however, momentum for domestic demand including consumption is likely to moderate. The government will focus on macroeconomic and fine-tuning measures to compensate the domestic economy, so as to support growth mostly in line with potential and ease difficulties of ordinary people. The government will continue its endeavor to expand growth engines by improving the business environment to cope with the weakening momentum for domestic demand and strengthening competitiveness of the service industry. The government will also enhance efforts to compensate the sluggish construction investment. * For further details, please refer to the attached file

Mar 2007