Korean economy shows signs of recovery despite external uncertainties: gov't

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The Korean economy has shown signs of a gradual recovery, led by improvement in exports, production and employment, though external uncertainties persist amid volatile prices of raw materials, the finance ministry said Friday.

The assessment made in its monthly economic assessment report of the Green Book is more positive than its earlier ones, as the government mentioned a recovery for the first time since June last year.

"We've seen signs of a gradual economic recovery on the back of the rebound of production and exports in the manufacturing sector, and the improvement in the service field and the job market," the Ministry of the Economy and Finance said.

The country's industry output advanced 1.1 percent on-month and marked 2.8 percent growth from a year earlier in September, as production from the chip industry jumped 12.9 percent on-month and 23.7 percent on-year, according to government data.

In October, exports rose for the first time in 13 months by rising 5.1 percent on-year to $55 billion on the improvement of the chip sector.

On-year employment also grew at a faster pace for the third consecutive month in October.

But the government noted the slower-than-expected fall in prices.

"Price volatility remains due to supply factors despite the gradual downtrend in inflationary pressure," the report read.

The country's on-year inflation accelerated for the third consecutive month in October to 3.8 percent due mainly to greater volatility in global oil prices and rising prices of fresh food items amid unfavorable weather conditions.

The government has said inflation is likely to ease slower than expected, though the country is expected to meet its target of 2 percent by the end of 2024.

Speaking of external factors, the ministry said uncertainties remain over prices of raw materials due to the Russia-Ukraine war and instability in the Middle East, as well as concerns over higher interests rates for longer in major nations. (Yonhap)