Government: “Gradual domestic recovery signs… Sectoral differences in pace persist”

[Photo provided by Yonhap News],
, ‘ The government has diagnosed signs of recovery in domestic consumption as it emphasizes the recovery trend centered on exports for the fifth consecutive month.’,
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, ‘ The Ministry of Economy and Finance mentioned in the September issue of “Recent Economic Trends” released today (13th), “Our economy is continuing the strong recovery trend centered on robust exports and manufacturing, with signs of recovery in domestic consumption particularly in investment in facilities and the service sector showing varied speeds within sectors.”‘,
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, ‘ However, by mentioning the “varied speeds within sectors,” it suggested that the cyclical effect of the export boom on the economy is not yet sufficient.’,
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, ‘ Kim Gwi-beom, head of economic analysis at the Ministry of Economy and Finance, explained, “This takes into account that the spread of recovery across all areas of domestic consumption falls short of expectations.”‘,
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, ‘ While the government’s diagnosis of signs of recovery in domestic consumption has continued for five months, there remains a discrepancy in assessments from external sources such as the Korea Development Institute (KDI).’,
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, ‘ In its “Economic Trends” report released on the 9th, the KDI concluded that despite the high growth rate in exports, the delay in domestic consumption recovery due to the high interest rate environment is restraining economic improvement, marking the 10th month of sluggish domestic consumption.’,
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, ‘ Among key domestic indicators in July, retail sales fell by 2.1% compared to a year ago, construction investment decreased by 5.3 due to poor performance in civil engineering projects, while service industry production increased by 2.2%, and facility investment showed a growth rate of 18.5%.’,
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, ‘ Regarding external conditions, the government acknowledged the recovery momentum through trade improvements and fundamental shifts in major countries’ currency policies but noted regional differences in the pace of recovery, particularly highlighting ongoing uncertainties such as related to the Russia-Ukraine conflict and the escalation of conflicts in the Middle East.’,
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