Uncertainties still prevail in the Korean economy, although the downside risks trend has slowed, aided by increased production in the services and mining industries in recent months, a state-run think tank said Sunday.
The South Korean government in June lowered its growth outlook for this year to 3.3 percent from 3.7 percent, forecast in December, amid the deepening eurozone crisis and global uncertainties feared to hurt its export-driven economy.
Private consumption rebounded, with demand for durables surging, said the Korea Development Institute in a monthly report.
The consumer sentiment index fell to 101 in June from 105 in May due to the growing uncertainties in the domestic and global economies, the report said.
Investment in facilities and construction continued to be sluggish in May, while the country witnessed a $4.96 billion trade surplus in June, according to the report.
The labor market stabilized with a surge in the number of employed laborers and falling joblessness rate, it said.
Prices of consumer goods rose 2.2 percent in June, down from the previous month's 2.5 percent, the report said, citing slowing price hikes of agricultural products and petrochemical goods.
Turning to the domestic financial markets, the report said, "Uncertainties eased somewhat after the general elections in Greece, although uncertainties still persist over the eurozone crisis." (Yonhap)