SEJONG -- South Korea's economy is recovering at a slower pace than expected amid still weak exports growth and sluggish job creation, a state-run think tank said Sunday.
   
"The Korean economy showed mitigated contraction in domestic demand and a rebound of exports to a positive growth, but its overall pace of recovery is more moderate than expected," the Korea Development Institute said in its report that analyzed the latest economic indicators.
   
The report said that retail sales in February increased from a year earlier, while consumer sentiment improved over the same period, indicating that private-sector spending is showing signs of bouncing back.
   
Exports grew 0.4 percent in March from a year earlier, showing its growth rate remains weak despite a sharp turnaround from an 8.6 percent decline in the previous month. The economy added 201,000 jobs in February from a year earlier, following 322,000 in January.
   
The report attributed the sharp slowdown in job creation to the Lunar New Year holidays, which led to less employment of one-day workers.
   
Touching on the global economy, the report said U.S. and China maintained a "gradual" recovery in their economic indicators. The Japanese economic recovery is delayed due to shrinking exports coupled with sluggish production and consumption, according to the report. (Yonhap News)