Economic Trends
The Green Book: Current Economic Trends
Jul 2012
Overview
The Korean economy has seen inflation decelerate, employment expand and real economic indicators slightly improve, but economic uncertainties are growing along with falling coincident and leading indicators.
The employment rate in May stood at 60.5 percent, up from April’s 59.7 percent, and the jobless rate fell to 3.1 percent from 3.5 percent in April as the economy continues to add more than 400,000 jobs.
Consumer prices in June stayed within a 2 percent range for the fourth consecutive month, while core inflation has been in a steady downward trend at 1.5 percent in June, down from 1.6 percent in May and 1.8 percent in April.
Mining and manufacturing production in May rose 1.1 percent month-on-month due to an increase in production of refined petroleum and chemical products while service output was up 0.2 percent compared to the previous month, helped by an increase in wholesale & retail sales, transportation and hotel & restaurants.
In May, retail sales climbed 0.7 percent from a month earlier thanks to an increase in durable goods sales led by automobile sales as well as semi-durable and non-durable goods sales.
Facility investment in May decreased 0.8 percent from the previous month due to a decline in transportation equipment investment. Construction investment rose 2.5 percent month-on-month backed by an increase in both building construction and civil engineering works.
Exports in June increased for the first time in three months on the back of robust exports of major items. The current account balance in June posted a surplus of US$4.96 billion, up from last month’s US$2.26 billion.
The cyclical indicator of the coincident composite index in May fell 0.5 points from a month ago while the leading composite index slipped 0.4 points month-on-month.
In June, volatility eased in domestic financial market as the Greek election outcome and the eurozone summit deal helped calm the global financial market.
In June, housing prices fell 0.1 percent compared to the previous month, while rent prices rose 0.1 percent month-on-month, but at a slower pace than the previous month’s 0.2 percent.
External and domestic uncertainties continue amid ongoing destabilizing situations in the eurozone and concerns over economic slowdown in the US and other major economies.
The Korean government will closely monitor domestic and global economic situations, while bracing for the possibility of a prolonged crisis and reinforcing policy actions to stimulate the economy. At the same time, the government will accelerate efforts to stabilize the lives of middle- and low-income classes and strengthen the economy through job creation and stabilization of necessity prices.
* For further details, please refer to the attached file
The Korean economy has seen inflation decelerate, employment expand and real economic indicators slightly improve, but economic uncertainties are growing along with falling coincident and leading indicators.
The employment rate in May stood at 60.5 percent, up from April’s 59.7 percent, and the jobless rate fell to 3.1 percent from 3.5 percent in April as the economy continues to add more than 400,000 jobs.
Consumer prices in June stayed within a 2 percent range for the fourth consecutive month, while core inflation has been in a steady downward trend at 1.5 percent in June, down from 1.6 percent in May and 1.8 percent in April.
Mining and manufacturing production in May rose 1.1 percent month-on-month due to an increase in production of refined petroleum and chemical products while service output was up 0.2 percent compared to the previous month, helped by an increase in wholesale & retail sales, transportation and hotel & restaurants.
In May, retail sales climbed 0.7 percent from a month earlier thanks to an increase in durable goods sales led by automobile sales as well as semi-durable and non-durable goods sales.
Facility investment in May decreased 0.8 percent from the previous month due to a decline in transportation equipment investment. Construction investment rose 2.5 percent month-on-month backed by an increase in both building construction and civil engineering works.
Exports in June increased for the first time in three months on the back of robust exports of major items. The current account balance in June posted a surplus of US$4.96 billion, up from last month’s US$2.26 billion.
The cyclical indicator of the coincident composite index in May fell 0.5 points from a month ago while the leading composite index slipped 0.4 points month-on-month.
In June, volatility eased in domestic financial market as the Greek election outcome and the eurozone summit deal helped calm the global financial market.
In June, housing prices fell 0.1 percent compared to the previous month, while rent prices rose 0.1 percent month-on-month, but at a slower pace than the previous month’s 0.2 percent.
External and domestic uncertainties continue amid ongoing destabilizing situations in the eurozone and concerns over economic slowdown in the US and other major economies.
The Korean government will closely monitor domestic and global economic situations, while bracing for the possibility of a prolonged crisis and reinforcing policy actions to stimulate the economy. At the same time, the government will accelerate efforts to stabilize the lives of middle- and low-income classes and strengthen the economy through job creation and stabilization of necessity prices.
* For further details, please refer to the attached file
