S. Korea Sees Economic Growth as Consumer Spending Surges
(MENAFN) South Korea's government indicated signs of economic recovery on Thursday, driven by stronger consumer spending that has helped counterbalance persistent economic uncertainties.
In its latest monthly report, known as the Green Book, the Ministry of Economy and Finance highlighted ongoing concerns regarding the broader Asian economy. These include a slow recovery in construction investments, employment struggles affecting vulnerable groups, and a drop in exports exacerbated by U.S. tariffs.
Nevertheless, the ministry noted encouraging signs of recovery, pointing to a rise in consumer spending attributed to the impact of government policies.
The report also cautioned that global economic instability persists, driven by volatility in the financial markets and sluggish trade and growth conditions, worsened by the deteriorating trade environment. In response, the government pledged to accelerate its supplementary budget plan and assist local businesses impacted by U.S. tariffs.
As part of this extra budget initiative, South Korea launched cash handouts to all citizens last month to boost struggling private consumption.
Sentiment among consumers has improved for four consecutive months, with July seeing a notable increase in confidence regarding economic conditions.
Credit card spending rose by 6.3 percent in July compared to the same month last year, and the number of Chinese tourists visiting South Korea surged by 36.2 percent.
Exports grew by 5.9 percent in July year-on-year, with shipments to the U.S. increasing by 1.4 percent after a three-month decline.
While facility investment dipped by 3.7 percent in June from the previous month, retail sales edged up by 0.5 percent in the same period.
The country also saw a rise in employment, with 171,000 more jobs added in July compared to the previous year, bringing the unemployment rate down by 0.1 percentage point to 2.4 percent.
Consumer prices increased by 2.1 percent in July year-on-year, a slight deceleration from June’s 2.2 percent rise.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
