Korea's economic recovery trend solidifying on strong exports
Containers are stacked at a port in Pyeongtaek, Gyeonggi Province, July 1. Yonhap
Korea's economic recovery trend is solidifying on the back of strong exports and improving domestic consumption, the finance ministry said Wednesday.
The Ministry of Finance and Economy made the assessment in its monthly economic report, known as the Green Book, noting the government aims to continue implementing its post-Middle East war strategy to maintain the momentum.
"After experiencing stronger growth in the first quarter, exports are continuing to post robust growth. Domestic consumption, which earlier faced setbacks from the impact of the Middle East war, is also showing improvement, leading to a solidifying economic recovery trend," the report said.
Last month, the report dropped the phrase "downward pressure," which had been used since March. In its latest edition, the Green Book upgraded its assessment to "solidifying" from the previous month's "has been showing signs of recovery."
In June, Korea's monthly exports surged 70.9 percent on-year to $102.25 billion, hitting a fresh high by surpassing the $100 billion mark for the first time.
In May, the country's retail sales moved up 0.1 percent on-year.
"However, due to the aftermath of the Middle East war, the burden of higher consumer prices and slowing employment continues," it added.
The finance ministry added that while the global economy is posting a gradual recovery, it continues to face lingering uncertainties, including inflation in major economies, as well as volatility in financial markets and energy prices.
"In order to minimize the impact of the Middle East war, we intend to focus our efforts on stabilizing livelihoods by monitoring the supply and demand of major items, as well as inflation," the report said.
"We also plan to promptly implement the second-half economic policy plan, focusing on boosting potential growth and addressing structural challenges, such as disparities," it added.
On the previous day, the government revised up its economic growth projection for Korea to 3 percent for 2026, up 1 percentage point from the previous estimate.