Gov't says economy on recovery path, warns of Middle East risks
A traditional market is packed with people shopping for groceries, Feb. 8. Yonhap
Korea's economy remains on a recovery path, but downside risks are increasing due to the situation in the Middle East, the finance ministry said Friday.
The Ministry of Finance and Economy made the assessment in its monthly economic report, known as the Green Book, marking the fifth consecutive month it has used the term "recovery" to describe the economy.
"Recently, our economy has continued its recovery trend, supported by improving domestic demand, including consumption and strong exports led by semiconductors," the report said.
Still, uncertainties remain, the ministry noted, citing ongoing employment difficulties in vulnerable sectors such as construction.
The report also warned of geopolitical risks, including rising global oil prices driven by developments in the Middle East.
It, however, added that recent economic indicators have yet to fully reflect the impact of the Middle East situation.
In January, retail sales rose 2.3 percent from the previous month, with gains across durable, semi-durable and non-durable goods.
For February, retail sales are expected to see further support from a faster increase in domestic credit card spending and improving consumer sentiment.
Exports, led by semiconductors, continued their upward trend.
In February, outbound shipments increased 28.7 percent from a year earlier, while average daily exports, adjusted for working days, surged 49 percent.
Looking ahead, the government said it will swiftly draw up a supplementary budget to support livelihoods and economic recovery while minimize the impact of the Middle East situation.
It added that a joint emergency response team will monitor all sectors around the clock and respond promptly to any signs of instability.