Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

발행물

Economic Trends

The Green Book: Current Economic Trends

Overview Despite employment and inflation continuing to remain stable, the economic recovery has been slowing down as the index of all industry production fell for the second consecutive month in May due to decreases in mining and manufacturing production, public administration, and construction activities. The economy added fewer jobs in May than it did in April, adding only 413,000 jobs year-on-year. Consumer prices in June remained stable in the 1 percent range and increased 1.7 percent year-on-year, the same level of increase as the previous month. Mining and manufacturing production dropped by 2.7 percent month-on-month in May as major exports such as automobiles and mobile phones slowed down and the number of days worked decreased due to holidays such as Childrens Day and Buddhas Birthday. Retail sales and service output in May recovered somewhat from the slump they experienced following the Sewol ferry disaster, improving 1.4 percent and 0.6 percent, respectively. The indices have yet to fully recover from a fall in April, when retail sales fell 1.6 percent and service output dropped 1.2 percent. Facility investment in May declined 1.4 percent month-on-month as both transportation equipment investment and machinery investment fell. Construction completed fell 6.0 percent from the previous months 6.9 percent increase, due to municipal and provincial elections. The composite index of coincident indicators and the composite index of leading indicators fell by 0.4 points and 0.2 points, respectively. Exports rose 2.5 percent in June, recovering from a 1.0 percent fall in the previous month, due to an increase in exports to the US and an increase in semiconductor and vessel exports. The trade surplus was US$5.29 billion. The stock market plummeted in the beginning of June due to external uncertainties, including political unrest in Iraq, but ended the month increased as economic indicators improved in the US, China and other major economies. The value of the won rose. In June, housing prices across the country rose slightly (up 0.02%) despite a fall in the prices in the Seoul metropolitan area, as prices in areas other than the Seoul metropolitan area continued to increase. Jeonse (lump-sum deposits with no monthly payments) prices increased 0.10 percent, up from the 0.07 percent increase seen in the previous month. The economic recovery faltered as the index of all industry production fell while consumption and investment have yet to fully recover. The Korean government will continue to closely monitor internal and external economic trends as external risks remain, including US QE tapering, uncertainties in emerging economies, and the weakening of the yen, and at the same time will work to protect domestic markets from external shocks. The government will implement policies to support the working class and stimulate the economy, and will continue to successfully implement the Three-year Plan for Economic Innovation to strengthen Koreas economic fundamentals. * For further details, please refer to the attached file

Jul 2014