Exports fuel Korea's stronger economic recovery

Korea's economic recovery trend is strengthening, driven by robust exports and improving domestic consumption, the finance ministry said Friday.

Amid lingering uncertainty stemming from the conflict in the Middle East, burdens on people's livelihoods persist including inflationary pressures from high oil prices and difficult employment conditions for vulnerable groups and sectors, the Ministry of Finance and Economy said in its monthly economic assessment report — the Green Book.

"Recently, the Korean economy has seen its recovery strengthen, with exports rising sharply and domestic demand, including consumption, showing signs of improvement," it added.

The ministry upgraded its assessment of the economy in its latest report, describing the recovery as strengthening, compared with the previous month's assessment that it was solidifying.

In July, Korea's monthly exports surged 62.8 percent on year to $98.9 billion, marking the second-largest monthly figure after the record $102.2 billion posted in June.

Retail sales rose 2.7 percent in June from a month earlier on strong demand for durable goods, with consumer sentiment remaining positive for the third consecutive month in July.

Consumer prices increased 2.8 percent in July, slowing down from a 3.2 percent rise in the previous month, as oil prices fell following a short-lived cease-fire in the Middle East.

The finance ministry said it will do its utmost to minimize the economic impact of the conflict in the Middle East and continue efforts to address structural issues.

"In order to minimize the impact of the Middle East war, we intend to focus our efforts on stabilizing livelihoods by monitoring the supply and demand of major items, as well as inflation," the report said.

"We also plan to promptly implement the second-half economic policy plan, focusing on boosting potential growth and addressing structural challenges, such as disparities." 

Yonhap