S. Korean economic recovery strengthens on strong exports, consumption

Seoul, Aug. 14 (Yonhap) - The South Korean economy's recovery is gaining momentum, propelled by strong exports and rising domestic consumption, according to the finance ministry's latest economic assessment report, known as the Green Book. Despite ongoing uncertainty caused by the Middle East conflict, the ministry noted that the challenges facing people's livelihoods remain significant. These include inflationary pressures from high oil prices and employment difficulties, particularly for vulnerable groups and sectors.

The Korean economy has shown considerable progress recently, with exports surging and domestic demand, including consumption, displaying positive signs, the ministry added. The ministry upgraded its evaluation of the economy in its latest report, describing the recovery as strengthening compared to the previous month's assessment of it being solidifying.

In July, South Korean exports increased by 62.8 percent year-on-year to $98.9 billion, the second-highest monthly figure, following the record $102.2 billion in June. Retail sales grew by 2.7 percent in June from the previous month, driven by strong demand for durable goods. Consumer sentiment remained positive for the third consecutive month in July.

Consumer prices rose by 2.8 percent in July, a slowdown from a 3.2 percent increase in the previous month, as oil prices dropped following a temporary ceasefire in the Middle East. The finance ministry pledged to minimize the economic impact of the Middle East conflict and would continue to address structural issues. In an effort to minimize the impact of the Middle East war, the ministry aims to stabilize livelihoods by monitoring major items' supply and demand and inflation, the report stated.

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