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Export, domestic consumption-led recovery still going despite uncertainties: finance ministry

2018/09/14 10:00

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SEJONG, Sept. 14 (Yonhap) -- South Korea's economic recovery is being maintained by robust exports and domestic consumption, although capital spending and production are facing adjustments and external uncertainties are on the rise, a government report said Friday.

A weaker job market, rate hikes in the United States and rising oil prices pose downside risks for Asia's fourth-largest economy, the finance ministry said in its monthly economic assessment report.

"The economy is maintaining its export and private spending-led recovery, but facility investment and output faced corrections, and uncertainties increased over trade conflict between the U.S. and China," it added.

The report, called the "Green Book," is based on the latest economic indicators of such key factors as output, exports, consumption and corporate investment, which provide clues as to how the economy has been faring in recent months.

The country's overall industrial output rose 0.5 percent on-month in July, following the previous month's 0.7 percent on-month decline.

Retail sales rose 0.5 percent on-month, and facility investments dipped 0.6 percent, according to the latest review.

South Korea's exports have been on a steep upside cycle since November 2016, led by a spike in global demand.

Outbound shipments jumped 8.7 percent in August from a year earlier, according to government data.

At home, there have been worries that Asia's fourth-largest economy may be entering a downward path. Consumer sentiment also deteriorated, with private spending suffering a slowdown.

"The implementation of fiscal spending will be accelerated to help bolster the economic recovery and create more jobs," a ministry official said.

sam@yna.co.kr

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