Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

Economic Trends

The Green Book: Current Economic Trends

Overview Recent Korean economy continued trend growth with domestic demand and exports keeping a balance and stayed on a normal growth track in tandem with its growth potential. Consumption increased in a gradual and stable manner with household debt restructuring nearing the end and household income conditions improving led by employment growth. Facility investment is gradually improving on the back of recovering domestic economy, while construction investment continued to reside in laggardness. Exports (customs cleared, current value) continued a solid growth, setting a record high monthly volume helped by the robust global economy, despite adverse conditions including the wons appreciation. However, the current account registered a temporary deficit, as imports rose faster than exports due to high oil prices and recovering domestic demand. Service account deficit including the travel account and seasonal factors such as overseas dividend payments also contributed to the current account deficit. Production activity, in both the manufacturing production and service output, ran on a stable upward track, in reflection of reviving domestic demand and robust exports. The service sector led jobs growth and unemployment stayed at a relatively low level. Albeit high international oil prices, prices sustained stability at 2 percent range from the same month of previous year, as the pressure of aggregate demand did not materialize and farm produce prices remained stable. Given the current economic trend, the Korean economy is likely to achieve 5 percent growth and target job creation of 350,000~400,000 this year. However, in view of adverse external conditions, the government will constantly monitor downward risks against economic growth such as movements of oil prices and foreign exchange rates, while accelerating mid to long-term efforts to improve the fundamentals of the Korean economy. * For further details, please refer to the attached file

Jun 2006