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 has seen production and investment rebound with exports improving, but consumption slowed somewhat due to a high base effect and shrinking consumer confidence. The economy added 339,000 jobs in November, a rise from 278,000 in the previous month, backed by the brisk agriculture, forestry fishery and construction sectors. Job creation in the manufacturing sector remains weak (down 102,000, y-o-y). Consumer prices rose at a slower rate in December compared with the previous month (up 1.5% up 1.3%, y-o-y), despite rising oil product prices, as electricity rates fell and agricultural product prices rose at a slower rate. Mining and manufacturing production in November picked up (down 1.3% up 3.4%, m-o-m) as the auto worker strikes came to an end and the index was no more affected by a production halt of Samsungs Galaxy Note 7 smartphones. Service output rose 0.1 percent month-on-month in November, backed by financial insurance services and transportation services. Retail sales slipped on falling consumer confidence in November, as well as a high base effect from the previous month when the index soared backed by Korea Sales Festa. The index dropped 0.2 percent month-on-month, after surging 5.5 percent in the previous month. Facility investment rose 5.9 percent month-on-month in November due to increased investments by the IT industries, such as a high level of investments in semiconductor fabrication facilities. Construction investment rebounded, rising 6.4 percent month-on-month, backed by strong presales of new homes. In November, both the cyclical indicator of the coincident composite index and the cyclical indicator of the leading composite index remained unchanged. Exports increased for the second consecutive month in December, going up 6.4 percent year-on-year, due to strong semiconductors and other major export items, and also due to more days worked (up 0.5 days, y-o-y). Stock prices rose in December backed by bullish global stock markets, and the dollar-won exchange rate increased as a result of dollar appreciation amid expectations of additional rate hikes in the US. Both housing prices (up 0.15% up 0.07%, m-o-m) and Jeonse (lump-sum deposits with no monthly payments) prices (up 0.15% up 0.08%, m-o-m) rose at a slower rate in December in the wake of the government measures to curb housing market overheating and as demand decreased after seasonal spikes. Although exports have been improving, there is a chance that the recovery momentum will be hampered by internal and external uncertainties amid sluggish domestic demand. The government will successfully implement budgets frontloaded to the first quarter, the largest ever, and other 2017 economic policies, and closely monitor necessities prices to increase stability in the real economy. Moreover, the government will operate an emergency task force and closely monitor developments in the economy and financial markets, and be thoroughly prepared for internal and external risks. * For further details, please refer to the attached file

Jan 2017