Economic Bulletin | KDI 경제교육·정보센터

Economic Trends

The Green Book: Current Economic Trends

Overview The economy is recovering from a slowdown seen early in the year as production rebounded backed by exports which posted a slower fall compared with the previous months. Meanwhile, domestic consumption failed to pick up from the previous months fall. The economy added jobs at a slower rate in February, from 339,000 jobs year-on-year in the previous month to 223,000 jobs, due to a high base effect and as the job survey was conducted just after the Lunar New Years holiday when employment usually hits the lowest of the year. Consumer prices rose at a slower rate year-on-year in March, from 1.3 percent in the previous month to 1.0 percent, due to low petroleum product prices. Mining and manufacturing production rebounded in February from a 2.1 percent fall to a 3.3 percent rise, the highest in six years and five months, backed by strong exports (in volume) and growing demand for semiconductors following the release of new mobile phone models. In February, service output turned positive from a 1.3 percent fall to a 0.3 percent increase compared with the previous month, while retail sales failed to rebound, down 1.8 percent.Year-on-year, the two indexes improved 2.6 percent and 3.1 percent, respectively. Facility investment continued to decline in February, down 6.8 percent month-on-month, due to weak machinery investment and transportation equipment. Construction completed improved for the third consecutive month, up 1.7 percent, as both building construction and civil engineering works increased. The cyclical indicator of the coincident composite index and the cyclical indicator of the leading composite index both declined in February, each down 0.1 points. Exports continued to fall amid low international oil prices, but at a slower rate in March, from a 12.2 percent fall year-on-year in the previous month to an 8.2 percent decline, backed by strong mobile phones and steel products. In March, stock prices rose backed by foreign investors net purchase of Korean shares, while interest rates stayed stable. The Korean won appreciated against both the US dollar and Japanese yen. Both housing prices and Jeonse (lump-sum deposits with no monthly payments) prices stayed stable in March, as housing prices remained unchanged and the Jeonse prices grew at a slower rate, up 0.1 percent. The Korean economy has shown signs of recovery, helped by improving exports, policies to stimulate the economy, such as the extension of the luxury sales tax cut, and growing economic confidence. However delayed global economic recovery and international financial market volatility are posing risks. In order to maintain recovery momentum, the government will continue to implement its measures aimed at promoting economic innovation and structural reform, encouraging investment and accelerating job creation. The government will closely monitor internal and external economic developments as well as examine uncertainties and their possible impact on domestic financial markets, and will be prepared to make appropriate responses if necessary. * For further details, please refer to the attached file

Apr 2016