S. Korea Recovery Loses Momentum
S. Korea Recovery Loses Momentum

S. Korea Recovery Loses Momentum

S. Korea Recovery Loses Momentum

South Korea’s modest economic recovery bolstered by the uptick in construction and facility investment is losing steam in the face of a slowdown in private consumption, a state-run think tank said Tuesday.
“The Korean economy exhibited improved investments, but private consumption weakened slightly, implying only modest growth,” the Korea Development Institute said in its monthly evaluation of the country’s economic conditions. “Construction investment continued the rapid growth and facilities investment improved on recovering exports,” Yonhap reported.
The value of construction completed advanced 14.4% and construction orders jumped 19.5% in January as a government-led boom in the real estate market has continued for more than a year.
January’s equipment index rose 11.4% on-year on the back of a brisk increase in machinery, which posted a 20% on-year growth over the cited period.
Exports were the brightest side of the South Korea economy, as February’s outbound shipments rose for four months in a row to mark a five-year high of 20.2% growth.
However, private consumption has slowed down for the month as consumer sentiment was dampened by the protracted tightened job market and lingering uncertainties over political issues.
“Retail sales advanced temporarily, but consumer sentiment remained weak, indicating continued sluggishness in the recovery of private consumption,” the KDI report said.
On a seasonally adjusted on-month basis, retail sales decreased 2.2%, accelerating from a 0.3% fall in November and a 0.5% drop in December. Moreover, private consumption-related services like the accommodation and food businesses fell 6.4% from a year earlier.
The composite consumer sentiment index stood at 94.4 in February, up slightly from the previous month’s 93.3, the lowest since March 2009.
The think tank said private consumption is unlikely to make a rebound in the short run as the local job market remains in a slump.


Short URL : https://goo.gl/rMXSc8
  1. https://goo.gl/PDQn7Q
  • https://goo.gl/LtpT9l
  • https://goo.gl/izXdFy
  • https://goo.gl/rLVsrH
  • https://goo.gl/bcRp2O

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...

Add new comment

Read our comment policy before posting your viewpoints