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 economic recovery has been slowing down as inflation remains low and industrial activities fell for the first time in three months, although employment continues to increase. The economy added more jobs in August than it did in July, adding 594,000 jobs year-on-year. The consumer price index (CPI) in September rose 1.1 percent year-on-year, and the index slowed down from 1.4 percent in the previous month. Mining and manufacturing production declined month-on-month in August for the first time in three months from a 1.5 percent rise to a 3.8 percent fall, due to the summer vacation and strikes in the automobile industry. Service output improved in August from a 0.3 percent fall in the previous month to a 0.3 percent rise due to strong wholesale retail and healthcare social welfare services.Retail sales rose 2.7 percent, up from 0.3 percent in the previous month. Facility investment in August plummeted month-on-month from a 3.4 percent increase to a 10.6 percent drop due to a decrease in aircraft imports and weak investor confidence. Construction completed improved from a 1.5 percent fall to a 1.0 percent rise as both building construction and civil engineering works increased. The composite index of coincident indicators improved for the second consecutive month in August, rising 0.3 points, and the composite index of leading indicators rose 0.8 points. Exports, which dropped 0.2 percent year-on-year in August, grew 6.8 percent in September due to the increased number of days worked and strong exports to the US and the ASEAN countries. In September, market interest rates fell while the KOSPI declined somewhat due to foreign investors net selling of Korean shares. The dollar-won ratio rose and the 100 yen-won ratio fell compared to the previous month. Both housing prices and Jeonse (lump-sum deposits with no monthly payments) prices continued to increase in September, rising 0.2 percent and 0.3 percent, respectively. The economy has continued to suffer from weak domestic demand as consumption and investment have yet to fully recover, while external risk factors linger, such as US QE tapering, the weak yen and unrest in the Middle East. The Korean government will continue to closely monitor internal and external economic trends, and at the same time will work to protect domestic markets form external shocks. The government will also closely review the effects of its stimulus policies and will make necessary changes accordingly in order to expedite economic recovery.

Oct 2014