Confirming momentum for economic recovery... "Improvement in domestic demand and favorable exports"
The government diagnosed that the economic recovery trend is continuing due to improved consumer spending and a surge in semiconductor-oriented exports. However, it noted that uncertainties remain, including employment difficulties in vulnerable sectors, the pace of recovery in construction investment, and the impact of U.S. tariff imposition.
According to the "Recent Economic Trends" (Green Book) issue of February released by the Ministry of Finance and Economy on the 13th, exports in January increased by 33.9% compared to the same period last year, driven by a recovery in semiconductors. The daily average exports also rose by 14.0% to 2.8 billion U.S. dollars.
Domestic demand indicators also showed some improvement. The card domestic approval amount increased by 4.3% in the fourth quarter, and by 4.7% in January. Cement shipments per working day related to construction also turned positive, rising by 6.7% in January. Capital goods imports also increased by 27.5% in January, raising expectations for recovery in plant investment.
In December of last year, industrial production increased by 1.5% compared to the previous month. It was driven by semiconductors (2.9%), pharmaceuticals (10.2%), and metal processing (6.6%). Service sector production also rose by 1.1%. Retail, transportation and warehousing, and professional, scientific, and technical services showed growth. Production in the construction industry also increased by 12.1%. On the other hand, equipment investment decreased by 3.6% compared to the previous month.
Employment showed a slowdown. The number of employed people in January was 27.986 million, increasing by only 108,000 compared to the same month last year. The increase narrowed from 168,000 in December last year. The number of unemployed people rose by 128,000 to 1.211 million. The unemployment rate increased by 0.4 percentage points to 4.1%.
Prices continued their stable trend. The consumer price index in January rose 2.0% compared to the same month last year, slowing down from 2.3% in December. This was influenced by a reduction in the price increase of agricultural, livestock, and aquatic products. Petroleum prices remained stable due to falling international oil prices. The core inflation index, excluding food and energy, also increased by 2.0%.
The government said, "Recently, our economy shows a continued recovery trend, with improvements in domestic demand such as consumption, and a surge in exports centered around semiconductors," and "however, employment difficulties in vulnerable sectors continue, and uncertainties remain, such as the pace of recovery in construction investment and the impact of U.S. tariff imposition."
He added, "We will continue to actively implement macroeconomic policies and efforts to revitalize the sectors of consumption, investment, and exports to spread the momentum of economic recovery."
Son Ji-hye, reporter jh@etnews.com
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