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, employment continues to grow and major indicators rebounded from temporary setbacks in the previous month when industrial production slowed down due to the Lunar New Year holiday. The economy continued to add jobs in February compared with a year ago despite a high base (835,000 jobs added in February 2014). Permanent jobs led the increase and a total of 376,000 jobs were added year-on-year compared with 347,000 jobs a month ago. Consumer price inflation remained low in March, rising 0.4 percent year-on-year, due to low international oil prices and a stable supply of agricultural products, while core inflation, which excludes oil and agricultural products and is more related to demand, rose 2.1 percent, staying in the two percent range. Mining and manufacturing production rose 3.6 percent month-on-month in February, led by strong automobile and semiconductor production, picking up from a 3.8 percent fall in the previous month. Service output rebounded month-on-month in February from a 0.6 percent fall to a 1.6 percent increase and retail sales recovered from a 2.8 percent drop to a 2.8 percent rise, amid an improvement in housing and stock markets and thanks to the Lunar New Year holiday. Facility investment in February recovered from a 7.4 percent drop in the previous month to a 3.6 percent increase, backed by transportation equipment investment which quickly bounced back. Construction completed remained strong, growing 4.5 percent, as both building construction and civil engineering works continued to improve. The composite index of coincident indicators improved for the third consecutive month in February, rising 0.3 points, and the composite index of leading indicators increased 0.6 points. Exports continued to decrease year-on-year in March, falling 4.2 percent, as low oil prices pushed down oil and petrochemical product prices. The trade balance posted a surplus of US $8.39 billion. In March, market interest rates fell and the KOSPI went up, due to the BOKs policy rate cut and increased foreign capital inflows amid the ECBs quantitative easing. The Korean won slightly depreciated against the US dollar and the Japanese yen compared to the previous month. Both housing prices and Jeonse (lump-sum deposits with no monthly payments) prices continued to increase in February, rising 0.3 percent and 0.5 percent, respectively, while housing sales surged year-on-year by 24.4 percent to 112,000 transactions. Although real economic indicators have been volatile and external uncertainties, including the likelihood of the US Feds rate hike, linger, the economy is likely to be positively influenced by low oil prices, housing and stock market recoveries and the Iran nuclear deal. The Korean government will continue to closely monitor internal and external economic trends, and at the same time will further improve the Korean economys resilience against external shocks. The government will continue to implement the Three-year Plan for Economic Innovation and 2015s economic policies in order to revitalize the economy and pursue structural reform. * For further details, please refer to the attached file

Apr 2015