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 is on a recovery track in the second half with domestic demand, such as private consumption, showing stronger signs of improvement. Recovery in private consumption has accelerated driven by durable consumer goods including automobiles. A modest growth was seen in facility investment, while recovery in construction investment slowed. Exports (on current account basis), despite concerns over possible slowdown, continued a double-digit growth of 14.9 percent in July and August due to a sustained robust overseas demand. The improving economy was well captured in the growth of manufacturing and services output, which expanded by a large margin from the first half. Employment kept on growing, with the number of newly employed exceeding 400,000 for three consecutive months since May. The number of people on the payroll increased 430,000 in July. Prices remained stable as consumer prices stayed in the low and mid 2 percent range and core inflation stood around 2 percent. The Korean economy is forecast to reach its growth potential with a stronger economic growth. However, it is also facing downside risks such as high international oil prices. In particular, it will take time for the economic improvement to mark a change in peoples perception of the economy due to meager improvements in real GNI resulting from deteriorating terms of trade for the time being. * For further details, please refer to the attached file

Sep 2005