Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

발행물

Economic Trends

The Green Book: Current Economic Trends

Overview Although employment has stayed in a recovery track, the Korean economy has seen some real economic indicators hold back and inflation rise to the five percent range. Employment showed steady growth in July, adding 335,000 jobs, led by service industries, with the employment rate rising year-on-year to 60.0 percent from 59.8 percent, and the unemployment rate dropping to 3.3 percent from 3.7 percent. Consumer price inflation accelerated month-on-month from 4.7 percent to 5.3 percent in August, with rising agricultural product prices amid bad weather conditions and high durable goods prices affected by increasing international gold prices. Core consumer prices continued an upward track from 3.8 percent to 4.0 percent. Mining and manufacturing production fell 0.4 percent from the previous month in July, due to the torrential rain and as the moving of manufacturing facilities interrupted production. Service output grew 0.4 percent on the back of wholesale retail sales continuing an upward track. In July retail sales rose 2.3 percent month-on-month in line with steadily growing durable goods sales, particularly automobiles. Facilities investment dropped 5.6 percent month-on-month in July due to a decrease in machinery investment. Construction investment lost 15.1 percent from the previous month in line with shrinking SOC spending. A trade surplus in August narrowed from US$63 billion a month ago to US$8 billion, as summer vacation and other seasonal factors affected the index. Meanwhile, exports continued a soar, increasing 27.1 percent. The cyclical indicator of the coincident composite index rose for a third consecutive month in July with all of the indexs components improving. The leading composite index climbed year-on-year for three months in a row, as capital goods imports increased. In August, stock markets showed increased volatility with the US credit downgrade, while bond and FX markets presented relative stability. There have been remaining gaps between situations surrounding housing markets within and outside the Seoul metropolitan area in August, while rent increased at a faster pace as the autumn moving season approaches. With an increasing inflationary pressure in the Korean economy, uncertainties have been growing as downside risks have increased in the global economy and volatility has risen in the domestic and international financial markets. The Korean government will closely monitor local and global economic situations, while reinforcing short- and long-term policies to stabilize prices. In the meantime, it will renew its efforts to increase the economys capabilities to absorb external shocks, such as by improving fiscal soundness, facilitating the soft-landing of household debts, and urging the restructuring of savings banks. * For further details, please refer to the attached file

Sep 2011