Korea's economic slowdown 'gradually moderating': KDI
Shipping containers are stacked at a port in Busan, Aug. 1. Yonhap
The Korean economy's slowdown appears to be "gradually moderating" on the back of the looming recovery in the chip industry, a state-run think tank said Monday.
The assessment came after separate data from Statistics Korea showed that the inventory of semiconductor products fell 12.3 percent on-month in June, with their shipments advancing 41.1 percent.
"The slump in the semiconductor cycle is showing signs of abating, with sustained improvement in business sentiment indices," the Korea Development Institute (KDI) said.
"A growing number of indicators hint at an easing downturn in the semiconductor market, evidenced by escalating shipment and inventory indices and a surge in export volume, concurrent with the waning decline in semiconductor production," it added.
In July, Korea's exports of chips dropped 33.6 percent on-year to $7.44 billion.
The KDI added that Korea maintains a robust job market in the service sector, with inventory levels within the manufacturing sector also declining.
Korea's job additions remained stronger than expected in June on the back of the senior workforce, although the on-year growth slowed for the third consecutive month.
The country's industrial output, private spending and investment also rose for the second consecutive month in June, with inventories in the manufacturing sector falling 6.2 percent on-month, the sharpest drop since 1975.
The think tank, however, added that uncertainties still linger for the Korean economy amid the rising costs of raw materials, and the slower-than-expected recovery of the Chinese economy.
The KDI noted that concerns over a hike in global grain prices have increased due to the prolonged Russia-Ukraine war, coupled with unfavorable weather conditions.
"Amid the ongoing sluggishness of global manufacturing, China seems to be experiencing increased downside risks, primarily centered around its real estate market," it added. (Yonhap)