Ministry of Economy and Finance Announces ‘Recent Economic Trends (Green Book)’
On October 16, cars waiting for export were seen lined up at Pyeongtaek Port in Gyeonggi-do, with containers stacked behind them. According to a government assessment, key economic indicators such as production and consumption have shown improvement, indicating a recovery from the sluggish performance in the first half of the year.
In the ‘Recent Economic Trends (Green Book)’ released by the Ministry of Economy and Finance on the 17th, it was noted that even amidst monthly fluctuations, there has been an overall trend of improvement in major indicators like production and consumption, helping to overcome the first-half downturn. Last month, the effect of consumption coupons aimed at restoring livelihoods was cited as having enhanced positive signals for economic recovery.
Looking at industry specifics, industrial production in August showed a steady trend, with a decrease in the construction sector (-6.1%) and services (-0.7%), while mining and manufacturing (2.4%) increased. Although retail sales (-2.4%) and facility investment (-1.1%) decreased, and the consumer sentiment index fell by 1.3 points to 110.1 in September, the general trend was seen as improving. An increase in the average operating rate of the manufacturing sector (74.7%) in August is a positive factor for future facility investment, but a decline in domestic machinery orders (-9.2% year-on-year) is expected to act as a negative factor.
In terms of rapid indicators, last month, domestic card approval amounts were up 8.5% from a year earlier, marking the highest growth rate of the year. Domestic sales of Korean-made passenger cars also increased by 18.1%, reaching a yearly peak. The government noted, “September retail sales are supported by a favorable consumer sentiment index and an expansion in card approval growth rates, but the decline in discount store card approvals may act as a negative factor.”
In the service sector, while the increase in online sales and daily average stock trading value were positive, the decrease in mobile phone number portability was considered negative. Online sales rose 19.9% compared to the previous year, and the daily average stock trading value reached 19.2 trillion won, the highest since June (22.4 trillion won). Employment rose by 312,000 last month, while the consumer price index increased by 2.1% due to a reversal in petroleum product prices.
The government acknowledged challenges, stating, “There are ongoing concerns about delayed recovery in construction investment, employment issues centered around vulnerable sectors, and the potential slowdown in exports due to U.S. tariffs.” Regarding the external environment, they noted, “The global economy is under pressure from worsening trade conditions due to tariffs from major countries, leading to continued volatility in international financial markets and concerns about trade and growth slowdowns.”
The government emphasized their commitment to addressing these issues, saying, “We will concentrate the capabilities of the entire government to ensure that rapid fiscal execution, livelihood recovery consumption coupons, and large-scale discount events become catalysts for revitalizing domestic and regional economies. We will also put full efforts into supporting our companies and responding to trade risks arising from U.S. tariffs.”