Wed, 25 May 2022

SEOUL, May 13 (Xinhua) -- South Korea's economy was facing worry about slower export growth, investment slump and high inflation despite recovery in consumption and employment, a government report said Friday.

The Ministry of Economy and Finance said in its monthly economic report, called Green Book, that the South Korean economy saw a continued recovery in employment and the moderated risk for private consumption, caused by the lifting of anti-COVID-19 measures.

The ministry, however, noted that concerns remained about the investment slump and the limited export recovery due to geopolitical risks in Europe and the prolonged disruption of global supply chain while the headline inflation kept accelerating.

The country lifted all social-distancing guidelines except for an indoor mask mandate, boosting private consumption.

Consumer sentiment improved for the second consecutive month in April, and the number of jobs increased 865,000 last month from a year earlier.

Facility investment reduced 4.0 percent in the first quarter from three months earlier owing to the higher commodity prices and the global supply chain disruption.

Investment in the construction sector shrank 2.4 percent in the January-March quarter on shortage of construction materials.

Consumer price index (CPI) surged 4.8 percent in April from a year earlier, marking the fastest increase in 13 and a half years since October 2008.

Export, which accounts for about half of the export-driven economy, went up 12.6 percent in April on a yearly basis after expanding 18.2 percent in March.

More South Korea News

Access More

Sign up for South Korea News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!