ASIA BUSINESS S Korea economy backed by domestic demand
SEJONG — South Korea’s economy is backed by robust exports and domestic consumption, although capital spending and job creation remain sluggish and external uncertainties are deepening, a government report said yesterday.
A weaker job market, rate hikes in the United States and rising oil prices pose downside risks for Asia’s fourth-largest economy, the finance ministry said in its monthly economic assessment report.
“Exports and domestic demand are maintaining decent pace, but external uncertainties are on the rise due to the trade conflict between the US and China and rising oil prices,” it added.
The report, called the “Green Book”, is based on the latest economic indicators of such key factors as output, exports, consumption and corporate investment, which provide clues as to how the economy has been faring in recent months.
The country’s overall industrial output declined 1.3 per cent in September compared with a month earlier, following a 0.5 per cent onmonth rise the previous month.
Retail sales declined 2.2 per cent on-month in September, but rose 0.5 per cent from a year earlier.
In September, job additions reached 45,000, rising from August’s 5,000.
Facility investment rose 2.9 per cent in September from a month earlier, following the previous month’s 0.6 per cent on-month decrease.
On the export front, the country’s exports shot up in October compared with a year ago on upbeat sales of memory chips and petrochemical products.
Outbound shipments reached US$54.97 billion last month, a 22.7 per cent surge from a year ago and the second-highest monthly figure since September 2017, according to the data compiled by the Ministry of Trade, Industry and Energy. — YONHAP