Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

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Economic Trends

The Green Book: Current Economic Trends

Overview Employment and inflation remain stable in the economy, with output rising in all sectors including mining and manufacturing, services, construction and public administration. The economy added 705,000 jobs year-on-year in January, up from 560,000 in the previous month. Consumer price inflation in February was 1.0 percent, down from 1.1 percent in January. Mining and manufacturing production grew 0.1 percent in January, led by mobile phones and automobiles. Service output increased 0.9 percent, as wholesale retail and hotels restaurants improved due to the Lunar New Year effect. Retail sales increased at the fastest pace in 34 months, rising 2.4 percent month-on-month in January. An increase in car sales following the special consumption tax cut (7% - 6%) helped recover from the previous months fall in retail sales (down 1.1%). Facility investment fell 4.5 percent in January. The value of construction completed increased 9.7 percent, growing at the fastest pace since December 2011. The cyclical indicator of the coincident composite index rose 0.3 points month-on-month, while the cyclical indicator of the leading composite index remained unchanged in January. Exports rose 1.6 percent in February, led by shipments of IT products as well as exports to the EU and the ASEAN countries. The trade balance remained in the black at US$0.93 billion. Volatility increased in the stock markets in February, due to the US governments winding down of its quantitative easing program, instability in the emerging markets, and improving economic data in major countries. The value of the won improved slightly. Housing prices continued to increase month-on-month in February (0.24% - 0.20%). Jeonse prices (lump-sum deposits with no monthly payments) also continued to rise, but at a slower pace (0.59% - 0.49%). The Korean economy has showed clear signs of recovery. However, recovery in the private sector including investment has yet to firmly take hold, and external uncertainties concerning US quantitative easing risks, unstable emerging markets and the weak yen remain. The Korean government will closely monitor global and domestic economic situations and prepare for external shocks, while continue to work on boosting domestic demand and support the working class. The government will also focus on successfully implementing the Three Year Plan for Economic Innovation. * For further details, please refer to the attached file

Mar 2014