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 steadily increase and inflation slightly slow down, but real economic indicators appears to be faltering. Employment stayed in good shape in March, rising by more than 400,000 mainly in the service sector helped by full-time job increases. Consumer prices have stabilized in April, staying within a 2 percent range for two successive months with a 2.5 percent increase in April and a 2.6 percent increase the previous month. Expected inflation has decreased since February but international oil prices and other dangerous factors remain. Mining and manufacturing production fell 3.1 percent month-on-month in March due to a decrease in semiconductors and machinery equipment production while service output was 1.0 percent down compared to the previous month, affected by financial insurance sector and transportation decreases. In March, retail sales dropped 2.7 percent from the previous month since semi-durable and non-durable goods sales slipped despite an increase in durable goods sales. Facility investment sank 7.0 percent month-on-month in March due to a fall in both machinery and transportation equipment investment. Construction investment dropped 1.8 percent compared to the previous month as an increase in civil engineering works was offset by a decrease in building construction. April exports fell slightly by 4.7 percent year-on-year due to a base effect, but the current account balance continues to post a surplus of more than US$2 billion, with US$2.15 billion in April and US$2.45 billion the previous month. The cyclical indicator of the coincident composite index in March fell 0.4 points from a month ago as the value of construction completion decreased. The leading composite index remained unchanged compared to the previous month. In April, Korean government bond prices went up and equities fell as the demand for safe assets rose amid the possibility that the European debt crisis may deteriorate. In April, the housing prices kept diverging between the Seoul metropolitan area and other areas, while the upward trend in rental prices slightly decelerated. Against the backdrop of a vulnerable international oil market, the uncertainties and risks have accelerated in regard to the European debt crisis such as the downgrade of Spanish government bonds. 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 recover and keep prices stable. At the same time, the government will accelerate efforts to secure the livelihoods of citizens through job creation and stabilization of necessity prices, continue to promote economic restructuring and boost domestic demand. * For further details, please refer to the attached file

May 2012