Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

발행물

Economic Trends

The Green Book: Current Economic Trends

Overview The economy improved throughout January and February as employment and inflation stabilized. However, a slight setback was witnessed in February due to the absence of Lunar New Year effects and slow exports hit by a severe winter chill in the US. In February, the economy added 835,000 jobs year-on-year, up from 705,000 in the previous month. Consumer price inflation in March was 1.3 percent, up from 1.0 percent in February. Mining and manufacturing production declined 1.8 percent in February,due to poor automobiles and semiconductors. For the first two months of the year, mining and manufacturing production increased 0.43 percent from the fourth quarter of 2013. Service output fell 0.4 percent in February. The January-February average for service output was 0.44 percent higher compared to the fourth quarter of the previous year. Retail sales declined 3.2 percent in February as sales of nondurable goods such as groceries and car fuel fell due to the absence of Lunar New Year effects seen in January. However, retail sales in January and February improved an average of 0.02 percent compared to the fourth quarter of 2014. Facility investment declined 0.3 percent, led by transportation equipment such as automobiles and imported vessels, while the value of construction completed fell 3.6 percent in February. For the first two months of the year, facility investment and the value of construction completed each rose 5.67 percent and 3.13 percent compared to the fourth quarter of 2013. The cyclical indicator of the coincident composite index and the cyclical indicator of the leading composite index both declined 0.1 percent in February. Exports rose 5.2 percent in March, as the cold spell in the US ended and days worked increased. The trade balance posted a surplus of US$4.19 billion. In March, financial markets were affected by political unrest in Ukraine and concerns over Chinas economic slowdown, but later rebounded due to improving economic indicators in the US. The value of the won improved slightly. Housing prices continued to increase month-on-month in March (up 0.2%) . Jeonse (lump-sum deposits with no monthly payments) prices also continued to rise (up 0.5%), due to higher demand during the spring moving season and reduced supply of Jeonse homes. 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 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

Apr 2014