The South Korean economy continues to show signs of recovery, driven by improving domestic demand and exports, the finance ministry said Friday, with consumer prices maintaining a stable trend.

The Ministry of Economy and Finance made the assessment in the Green Book, its monthly economic report, while noting that global geopolitical uncertainties remain a risk moving forward.

“The economy is maintaining a recovery amid overall stability in consumer prices, strong exports, and a robust manufacturing sector and facility investment, leading to a gradual recovery in domestic demand,” the ministry said.

The ministry highlighted signs of improving domestic demand for four straight months.

The global economy, meanwhile, is also showing signs of improvement, driven by a strong manufacturing sector and robust exports, though the pace of recovery varies across regions, the report added.

“Geopolitical risks, including the war between Russia and Ukraine and concerns about escalating conflict in the Middle East, al
ong with raw material price volatility and fears of a slowdown in major economies, have heightened uncertainties,” the report said.

Exports posted on-year gains for the 10th straight month in July, bolstered by the strong performance of semiconductors, advancing 13.9 percent to US$57.4 billion.

Consumer price growth, a key gauge of inflation, remained below 3 percent for the fourth consecutive month in July, reaching 2.6 percent.

The government has said that the country is projected to reach the target inflation rate of 2 percent by the end of 2024, though prices are expected to ease at a slower pace than initially forecast.

Retail sales, a measure of private spending, advanced 1 percent month-on-month in June as demand for automobiles and other durable goods climbed 5.2 percent.

Facility investment increased by 4.3 percent in June, rebounding from a 3.6 percent decline the previous month.

Source:Yonhapi News Agency