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 seen major indicators, such as mining and manufacturing production, retail sales and facility investment, continue to improve and employment keep rising by more than 400,000 jobs. The economy continued to add jobs in December, adding 422,000 jobs year-on-year, with permanent employment continuing to grow. Consumer price inflation remained low in January 2015, rising 0.5 month-on-month and 0.8 percent year-on-year, partly due to a continuous fall in international oil prices. Mining and manufacturing production grew at a faster rate in December from 1.0 percent in the previous month to 3.0 percent as production increased in most industries, particularly automobiles, semiconductors parts and chemical products, despite weak audio-visual communications equipment. Service output remained unchanged in December after it fell 0.3 percent the previous month. Retail sales continued to rise from 1.8 percent in the previous month to 2.2 percent backed by strong automobiles, communications devices and clothing sales. Facility investment continued to increase in December by 1.7 percent after it soared 13.3 percent the previous month helped by strong transportation equipment investment. Construction completed dropped at a slower rate from 1.3 percent to 0.8 percent backed by an increase in civil engineering works. The composite index of coincident indicators increased 0.3 points in December, and the composite index of leading indicators rose 0.2 points. Exports decreased somewhat year-on-year in January from a 3.6 percent rise to a 0.4 percent fall with low oil prices pushing down oil and petrochemical product prices. The trade balance remained in the black in December, posting a surplus of US $5.53 billion. In January, market interest rates fell while the KOSPI rose. The dollar-won ratio fell and the 100 yen-won ratio rose compared to the previous month. Both housing prices and Jeonse (lump-sum deposits with no monthly payments) prices continued to increase in January, rising 0.1 percent and 0.3 percent, respectively. Recovery in domestic consumption has not yet fully taken root despite increasing signs of recovery with related indicators having fluctuated, and the external uncertainties, such as the US rate hike, yen depreciation and high economic anxiety in oil producing countries, warrant close attention. 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 from external shocks. The government will continue to implement the Three-year Plan for Economic Innovation and 2015s economic policies in order to restructure and revitalize the economy by boosting domestic consumption. * For further details, please refer to the attached file

Feb 2015