Wed, 29 Mar 2023

S. Korean gov't sees economic slump for 2nd month

17 Mar 2023, 13:44 GMT+10

SEOUL, March 17 (Xinhua) -- South Korea's government on Friday saw its economy entering a slump for the second straight month on the back of weak export and slower consumption recovery.

The Ministry of Economy and Finance said in its monthly report, called Green Book, that the South Korean economy continued to see a slowdown due to a slower recovery in domestic demand, sluggish export and weak business sentiment in the manufacturing sector though inflation slightly slowed.

The government acknowledged the economic slump for the second successive month, after having expressed worry about it since June last year.

The ministry noted that uncertainties continued over the global economy owing to downside risks such as monetary tightening and concerns about the prolonged Russia-Ukraine conflict.

South Korea's export kept a downward trend for the fifth consecutive month in February, resulting in a trade deficit of 5.3 billion U.S. dollars.

The country logged the largest-ever current account deficit of 4.5 billion dollars in January.

Retail sale, which reflects private consumption, fell 2.1 percent in January from a month earlier, keeping a downward momentum for three months in a row.

The business survey index among manufacturers slipped 3 points over the month to 63 in February, continuing to slide for the third straight month amid the export reduction.

Consumer prices advanced 4.8 percent in February from a year earlier, after hovering above 5.0 percent for the past nine months.

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