Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

발행물

Economic Trends

The Green Book: Current Economic Trends

Overview Some major economic indicators have worsened recently due to temporary factors such as strikes in the car manufacturing industry and the Chuseok holiday, but employment and inflation remain stable, and the economy improved in the third quarter as mining and manufacturing production rebounded for the first time in two quarters. The economy added 463,000 jobs year-on-year in September, up from 432,000 in the previous month. Consumer price inflation went down year-on-year in October from 0.8 percent to 0.7 percent due to a fall in agricultural and petroleum product prices. Mining and manufacturing production fell 2.1 percent month-on-month in September, negatively affected by temporary factors, such as strikes in the car manufacturing industry and the Chuseok holiday. Service output increased by 0.3 percent from the previous month led by strong hotels restaurants. Retail sales decreased 2.0 percent in September compared with the previous month, as durable goods sales plunged due to strikes in the car manufacturing industry, and semi-durable and nondurable goods sales also fell. Facility investment declined 4.1 percent month-on-month in September as poor transportation equipment investment offset an increase in machinery investment. Construction investment went down by 2.2 percent due to a fall in building construction. The cyclical indicator of the conincident composite index fell 0.1 point month-on-month in September, and the leading composite index dropped 0.2 points. Exports in October climbed 7.3 percent year-on-year in line with an increase in shipments of automobiles and mobile phones to advanced countries including the US and EU. The trade balance remained in the black at US$4.9 billion. In October, stock prices rose and the won strengthened as foreign investors continued to net buy Korean stocks amid easing US debt default uncertainties and increased confidence in Koreas strong fundamentals. Housing prices continued to increase month-on-month in October from 0.05 percent to 0.29 percent, while rental prices of Jeonse homes (lump-sum deposits with no monthly payments) stayed on an upward track, affected by the high seasonal demand and decreasing supply of Jeonse homes, up from 0.51 percent to 0.68 percent. The Korean economy has showed clear signs of recovery. However, private sector investment has yet to pick up and external uncertainites, which include the US fiscal situation and the exit from unconventional monetary stimulus, remain. The Korean government will closely monitor the global and domestic economic situations and continue to pursue policies that stimulate the economy, such as measures to boost investment. The government will also focus on supporting the lives of the low- and middle-income classes through job creation and by stabilizing the prices of necessities, while continuing to adopt policies to strengthen the economy. * For further details, please refer to the attached file

Nov 2013