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Consumption pickup offsets steady slump in export, output: gov't report
By 임정요Published : July 8, 2016 - 11:45
The South Korean economy continues to be on a downward slope due to a slump in exports and industrial production despite an apparent uptick in private consumption, a government report showed Friday.
"Consumption is showing some signs of recovery, but the production side has remained in the doldrums, with a slowdown in employment," the finance ministry said in its monthly economy assessment report called the "Green Book."
The report is based on the latest economic indicators of such key factors as output, exports, consumption and corporate investment that could provide clues as to how the economy has been faring in recent months.
Recent data showed that retail sales are the mainstay of Asia's fourth-largest economy, partly recovering from a deep depression derived from an outbreak of Middle East Respiratory Syndrome a year ago.
Sales of passenger cars soared 24.1 percent on-year in June, up from a 20 percent on-year gain in May, as more people rushed to buy cars before the government's tax cut program was to end on June 30.
Local department stores saw their June sales jump 13.5 percent last month from a year earlier, a turnaround from a 5.5 percent drop in May.
The ministry said, however, the production and exporting front is too weak to further stir up the upside spirit of domestic demand as rising uncertainties in the world economy dragged down global demand and trade.
Output of the mining and manufacturing sectors rebounded to rise 2.5 percent on-month, due to one-off factors.
The country's outbound shipments fell 2.7 percent in June from a year earlier, extending its negative run to a record 17 straight months. But the decline narrowed from a 6 percent drop in May on the back of sales of vessels.
"The world economy is facing downside pressures stemming from a slowdown in the United States and the British exit from the European Union," the finance ministry said in the report. "The South Korean government will tighten monitoring of the external financial conditions to cushion any fallout from the heightened uncertainties."
The South Korean government unveiled a set of stimulus steps last week, including a plan to draw up a 10 trillion won ($8.6 billion) extra budget, to buttress the economy that has been suffering from waning exports and flaccid domestic demand, coupled with Brexit-triggered financial risks. (Yonhap)
"Consumption is showing some signs of recovery, but the production side has remained in the doldrums, with a slowdown in employment," the finance ministry said in its monthly economy assessment report called the "Green Book."
The report is based on the latest economic indicators of such key factors as output, exports, consumption and corporate investment that could provide clues as to how the economy has been faring in recent months.
Recent data showed that retail sales are the mainstay of Asia's fourth-largest economy, partly recovering from a deep depression derived from an outbreak of Middle East Respiratory Syndrome a year ago.
Sales of passenger cars soared 24.1 percent on-year in June, up from a 20 percent on-year gain in May, as more people rushed to buy cars before the government's tax cut program was to end on June 30.
Local department stores saw their June sales jump 13.5 percent last month from a year earlier, a turnaround from a 5.5 percent drop in May.
The ministry said, however, the production and exporting front is too weak to further stir up the upside spirit of domestic demand as rising uncertainties in the world economy dragged down global demand and trade.
Output of the mining and manufacturing sectors rebounded to rise 2.5 percent on-month, due to one-off factors.
The country's outbound shipments fell 2.7 percent in June from a year earlier, extending its negative run to a record 17 straight months. But the decline narrowed from a 6 percent drop in May on the back of sales of vessels.
"The world economy is facing downside pressures stemming from a slowdown in the United States and the British exit from the European Union," the finance ministry said in the report. "The South Korean government will tighten monitoring of the external financial conditions to cushion any fallout from the heightened uncertainties."
The South Korean government unveiled a set of stimulus steps last week, including a plan to draw up a 10 trillion won ($8.6 billion) extra budget, to buttress the economy that has been suffering from waning exports and flaccid domestic demand, coupled with Brexit-triggered financial risks. (Yonhap)
