S. Korean economy could see economic slowdown due to external uncertainty: Finance Ministry
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Loading... - Donghai Huang
- 20 Jul 2022
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South Korea's economy is on a mild recovery track, but geopolitical uncertainties are slowing the pace and that may contribute to further sluggish growth for the country.
This is according to the Finance Ministry's monthly greenbook report released on Wednesday.
Shin Se-byuck tells more.
The Ministry of Economy and Finance has expressed concerns over an economic slowdown in South Korea for the second consecutive month amid worsened external economic conditions.
According to the monthly greenbook economic assessment report on Wednesday, inflationary pressure has mounted both at home and abroad which could lead to export growth losing steam.
Citing multiple geopolitical risks such as the Fed's fast rate hikes, China's economic slowdown, and the prolonged war in Ukraine the report noted these factors could bring further volatility to the Korean economy.
However, the country is on a mild recovery track thanks to improvement in the job market and a rebound in in-person services.
South Korea's industrial production in all sectors increased as well.
In particular, the manufacturing and service sectors both posted almost 7.5 percent on-year growth in the month of May.
Also, exports, the main driver of the country's economic growth, rose 5.2 percent on-year in June on demand for chips and petroleum products.
That marked 20 months straight that exports have extended their gains, although it was the first time in 16 months that exports posted a single-digit growth figure.
One expert said this is because of so-called "stagflation", a mix of slumping growth and high inflation.
"Concerns about stagflation mostly caused by skyrocketing energy prices abroad are growing amid economic slowdown in South Korea. And that's what hinders the country's export growth." Read More…
