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 continued its recovery thanks to brisk exports, although temporary factors such as Chuseok holidays and bad weather nconditions negatively affected real economic indicators. Mining and manufacturing production in September, while rising 3.9 percent year-on year, fell 0.4 percent month-on-month due to unusual weather conditions and Chuseok holidays. Service output lost 0.4 percent month-on-month and 0.7 percent year-on-year amid bad weather. Consumer goods sales, despite the bad weather depressing grocery sales, increased 0.1 percent month-on-month and 4.5 percent year-on-year backed by strong durable goods sales. In September facilities investment fell 3.6 percent month-on-month due to a high base effect, while rising 11.8 percent year-on-year. Construction completed dropped 3.5 percent month-on-month and 14.8 percent year-on-year as Chuseok holidays and bad weather impaired construction performance. Exports in October, led by major export items, rose 29.9 percent year-on-year, while imports up 22.4 percent as those of capital and consumer goods increased. The total number of workers hired in September gained 249,000 year-on-year, decelerating an increase due to Chuseok holidays. The employment rate (seasonally adjusted) posted 59.1 percent, shedding 0.1 percentage point year-on-year. Although the number of jobs increased, the unemployment rate (seasonally adjusted) stayed flat year-on-year, registering 3.4 percent, as those from economically inactive population who applied for census jobs but were not selected were counted as unemployed persons. The consumer price in October posted a year-on-year increase of 4.1 percent due to high vegetable prices and a low base effect, while core consumer prices, which reflect inflation trends, increased 1.9 percent year-on-year, staying stable. In October stock prices rose and foreign exchange rates fell, backed by domestic enterprises strong performance and expectations for Feds additional quantitative easing. Housing prices slowed a decrease in the metropolitan area in October, while rental prices accelerated a rise due to seasonal demands and wait-and-see attitudes held by potential home buyers. To sum up, although the global economy continues a steady recovery, external uncertainties still exist such as a possible slowdown in major economies and policy changes in the US and China. The Korean government will go on with macroeconomic policies which facilitate sustainable growth, while renewing efforts to stabilize prices for basic necessities including vegetable. On the other hand, the government will continue to monitor the economys risk factors, in particular those exposed to external uncertainties and to carry out reform by sector such as the household, enterprise and finance sector, while encouraging cooperation between large conglomerates and small- and medium-sized enterprises, and improving job markets for vulnerable groups. * For further details, please refer to the attached file

Nov 2010