Economic Bulletin | KDI 경제정보센터

Economic Trends

Current Economic Trends

In May, industrial production, services production, retail sales, facilities investment, and constructioninvestment all decreased. In June, job growth increased and consumer prices growth slowed down. In May, total production fell (down 0.7% m-o-m and up 2.2% y-o-y), as industrial production (down 1.2%m-o-m and up 3.5% y-o-y), construction production (down 4.6% m-o-m and down 3.8% y-o-y) andservices production (down 0.5% m-o-m and up 2.3% y-o-y) all decreased. In May, retail sales (down 0.2% m-o-m and down 3.1% y-o-y), facilities investment (down 4.1% m-o-m anddown 5.1% y-o-y), and construction investment (down 4.6% m-o-m and down 3.8% y-o-y) all decreased. In June, exports grew by 5.1 percent from a year ago, driven by increased exports of the IT sector includingsemiconductors. The daily average of exports increased by 12.4 percent from a year ago. In June, the Consumer Sentiment Index (CSI) rose by 2.5 points to 100.9 month-on-month. The CompositeBusiness Sentiment Index (CBSI) increased by 2.8 points to 95.7 in June, and the CBSI outlook for July alsoincreased by 1.3 points to 93.1 month-on-month. In May, the cyclical indicator of the coincident composite index decreased by 0.6 points from the previousmonth, and the cyclical indicator of the leading composite index decreased by 0.1 points. In June, the economy added 96,000 jobs compared to the previous year and the unemployment rate roseby 0.2 percentage points from a year ago to 2.9 percent. In June, the Consumer Price Index (CPI) rose at a slower pace, increasing by 2.4 percent from the previousyear. The index excluding food and energy prices increased by 2.2 percent, and the index excludingagricultural and petroleum products increased by 2.0 percent. The CPI for basic necessities rose by 2.8percent. In June, Korean equity prices rallied, the Korean Won strengthened against the dollar, and the KoreanTreasury Bond yields fell driven by strong exports and a growing expectation of a shift in monetary policy. In June, housing prices increased (up 0.04% m-o-m), and Jeonse (lump-sum deposits with no monthlypayments) prices rose (up 0.11% m-o-m). With signs of inflation continuing to moderate, the Korean economys recovery gained furthermomentum as the domestic market showed signs of a rebound in addition to a pickup inmanufacturing sector and exports. The global economy is showing an overall recovery trend, mainly driven by the upturn in manufacturingactivity and trade. However, the pace of recovery differs across regions, amid continuing uncertaintiesassociated with geopolitical risks such as the Russia-Ukraine conflict and instability in the Middle East, andgrowing international trade barriers. The government plans to promptly implement key policy measures outlined in the Economic PolicyDirections for the second half of 2024, such as focusing price stabilization, supporting small businessowners, and shoring up domestic demand. Moreover, the government also plans to push forward its policyagenda outlined in the Dynamic Economy Roadmap, which will focus on improving the publics quality oflife and enhancing the sustainability of the Korean economy.

Aug 2024