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 has seen employment continuously increasing, while real economic indicators have improved in some sectors and the pace of inflation has slowed down. Employment stayed in good shape in February, increasing by 447,000 mainly in the service sector helped by full-time job increases. Consumer price inflation fell in March to a 2 percent range (from 3.1 percent the month before to 2.6 percent) for the first time since August 2010, driven by a slowdown in the pace of core inflation from 2.5 percent to 1.9 percent, but destabilizing factors remain such as rising prices of international oil and agricultural products. Mining and manufacturing production rose 0.8 percent month-on-month in February due to an improvement in semiconductors processed metals production, while service output increased 0.9 percent compared to the previous month thanks to the financial insurance sector increases. In February retail sales went 2.6 percent higher than a month ago, as semi- durable and nondurable goods sales climbed even with a decline in durable goods sales. Despite a rise in transportation equipment investment, facilities investment dropped 5.4 percent month-on-month in February due to a fall in machinery investment. Construction investment rose 10.7 percent compared to the previous month as both building construction and civil engineering works went up. March exports slightly fell 1.4 percent year-on-year due to a base effect, but the current account balance continues to post a surplus, rising to US$2.33 billion from the previous months US$1.52 billion. The cyclical indicator of the coincident composite index in February gained 0.5 points from a month ago with all components increasing. The leading composite index went up 0.5 points month-on-month backed by construction order increases. In March, foreign capital inflows into the domestic financial market slowed down as the demand for flight to safety weakened against the backdrop of economic recovery expectations in major countries. In March, housing prices continued to diverge between the Seoul metropolitan area and other areas, while rent prices rose at a slightly faster pace. External uncertainties have continued to remain high due to the ongoing European debt crisis and a rise in international oil prices. The Korean government will closely monitor any changes in local and global economic situations and the subsequent outcome, while reinforcing policy actions to help the economy continue to recover and keep prices stable. At the same time, the government will focus on securing the livelihoods of citizens through active job creation and stabilization of the prices of necessities, while also pursuing economic restructuring and boosting domestic demand. * For further details, please refer to the attached file

Apr 2012