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 has picked up from last months temporary slowdown as major economic indicators such as production, consumption and investment all improved, and employment and inflation remain stable. The economy added 476,000 jobs year-on-year in October, up from 463,000 in the previous month. Consumer price inflation posted an increase of less than 1.0 percent year-on-year for the third consecutive month in November due to a fall in agricultural and petroleum product prices. The index rose from 0.7 percent to 0.9 percent month-on-month. Mining and manufacturing production went up by 1.8 percent month-on-month in October as strikes in the car manufacturing industry ended. Service output increased by 0.4 percent from the previous month backed by a recovery in the real estate sector. Retail sales rose 1.3 percent in October compared with the previous month thanks to strong durable and nondurable goods sales such as mobile phones and groceries, despite a decrease in semi-durable goods sales, which was affected by poor clothing sales due to warm weather. Facility investment jumped 19.3 percent month-on-month in October in line with rising machinery imports, imports of large aircrafts and the ending of strikes in the car manufacturing industry. The value of construction completed rose by 2.8 percent due to strong new apartment sales. The cyclical indicator of the conincident composite index increased 0.1 point month-on-month in October, and the cyclical indicator of the leading composite index went up by 0.4 points. Export growth slowed down in November from 7.3 percent to 0.2 percent year-on-year as the number of days worked decreased (down 0.5 days) and shipments to the ASEAN countries fell. The trade balance remained in the black at US$4.8 billion. In November stock prices edged up and the won strengthened, despite the net outflow of foreign capital at the beginning of the month, as expectations for the US maintaining its quantitative easing program grew after the confirmation hearing for the next Fed chair. Housing prices continued to increase month-on-month in November, up 0.19 percent, while rental prices of Jeonse homes (lump-sum deposits with no monthly payments) rose at a slower pace from 0.68 percent to 0.52 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 and support the working class, such as measures to boost investment and employment. The government will also focus on strengthening the economy by streamlining regulations for the service sector. * For further details, please refer to the attached file

Dec 2013