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 maintained growth momentum with strong exports. Industrial and mining production posted double digit growth of 11.8 percent in January 2008 thanks to robust exports and improved consumption. Service output also increased, posting a 7.7 percent growth, up 1.9 percentage points from the previous month. The solid trend continued. Growth in consumer goods sales recovered from 2.6 percent to 4.7 percent month-on-month in January on the back of increasing sales of automobiles. Facility investment (estimated), however, fell 0.94 percent in January due to the high base effect from the same month of the previous year when it grew 18.6 percent spurred by high investment in semiconductor equipment and ATMs. In January, the coincident composite index (CCI) edged up supported by robust production and sales. The leading composite index (LCI), however, decreased due to falling share prices, decreasing construction orders and the worsening terms of trade triggered by rising oil prices. February exports surged 20.2 percent year-on-year thanks to brisk exports of ships, general machinery and petrochemicals, recording US$31.54 billion. Current account in January posted a deficit of US$2.60 billion, up from the previous year` US$0.43 billion, as the goods account shifted from surplus into deficit and the service account deficit continued. Consumer prices edged up 3.6 percent on-year and 0.4 percent on-month in February due to the rising oil, grain and commodity prices, along with service fees adjustments early this year and the low base effect of the previous year. To sum up, the Korean economy has maintained its upturn trend that started in the second half of 2007 in the face of increasing downside risks. Nonetheless, as downside risks such as rising oil prices and the slowing global economy remain, the Korean government will further intensify policy efforts to keep the current upward momentum intact while closely monitoring the economic conditions. * For further details, please refer to the attached file

Mar 2008