Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

발행물

Economic Trends

The Green Book: Current Economic Trends

Overview Although inflation remains low, the Korean economy has been moderately picking up from a slowdown in August and September as the index of all industry production increased for the first time in three months and employment continued to rise by more than 400,000 jobs. The economy continued to add jobs in October, adding 406,000 jobs year-on-year, with young adult employment growth accelerating, but growth slowed down due to a high base effect from a year ago. Consumer price inflation remained low in November, falling from a 1.2 percent rise to a 1.0 percent rise compared to a year ago, in line with falling international oil prices and stable supply of agricultural products. Mining and manufacturing production fell 1.6 percent in October as strong automobiles and chemical products were offset by decreasing semiconductors parts and audio-visual communications equipment. Service output continued to grow for the third consecutive month in October, rising 0.8 percent from the previous month. Retail sales continued to decline month-on-month due to weak communications devices and other durable goods sales, but at a slower rate, falling 0.4 percent, compared to a 3.2 percent fall a month ago. Facility investment dropped in October by 4.6 percent due to a high base effect from the previous month when the index soared 13.3 percent. Construction completed improved from a 5.8 percent fall to a 0.2 percent rise as building construction increased. The composite index of coincident indicators declined 0.3 points in October, and the composite index of leading indicators rose 0.3 points. Exports declined year-on-year in November from a 2.3 percent rise to a 1.9 percent fall due to fewer days worked and as unit prices declined in line with low international oil prices. The trade balance remained in the black in November, posting a surplus of US $5.61 billion. Market interest rates fell in November while the KOSPI increased as foreign investors purchased more Korean shares than selling. 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 November, rising 0.2 percent and 0.3 percent, respectively. External volatility, such as the ending of the US QE program, yen depreciation and falling international oil prices, can lead to uncertainties for the Korean economy. The Korean government will continue to closely monitor internal and external economic trends, and at the same time will prepare the Korean economy for any potential risks and work to protect domestic markets form external shocks. The government will also closely review the implementation of reform plans, particularly the Three-year Plan for Economic Innovation, while continuing to focus on expediting economic recovery. * For further details, please refer to the attached file

Dec 2014