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 remains on a recovery track on the back of robust exports,improving domestic demand indicators including consumption and investment, and reviving industrial production. Consumer goods sales continued solid growth in April, up 4.9 percent year-on-year, led by a sales pick-up of durable goods including automobiles and electronic appliances. Estimated facility investment jumped 15.6 percent in April from the previous month on the back of robust investment in machinery. Construction completed continued to expand. May exports (customs clearance basis, current balance) maintained double digit growth due to strong demand from foreign countries including Japan, the eurozone and China. Meanwhile, current account registered a deficit in April stemming from seasonal factors such as dividend payments by corporations whose fiscal year ends in December. Industrial activity in April started recovering from past sluggishness. This was attributable to domestic demand recovery and continued export growth. Employment continued to trend up this year. The number of workers on payrolls has steadily increased since the beginning of the year, helped by the robust performance in the service sector. Prices continued to stabilize with price stability of agricultural and livestock products despite an increase in public transportation fees in the Seoul metropolitan area. The Korean economy is expected to expand a mid 4 percent (around 4.5 percent) in 2007 with its growth lower in the first half and higher in the second, provided external conditions do not deteriorate sharply. The government will focus on establishing solid foundations for domestic demand through the second phase of the measures to improve the business environment and measures to strengthen competitiveness of the service industry, with a view to firming up the current trend of increasing consumption and investment. The government will take up the necessary procedures related to KORUS FTA as planned and make the best of it toward strengthening growth potential. Furthermore, the government will closely monitor the economic trends and keep the risk management intact in order to cope with changes in the external sector. * For further details, please refer to the attached file

Jun 2007