S. Korea's economic data indicates easing of economic slump

Source: Xinhua | 2020-01-10

South Korea's recent economic data indicated the easing of economic slump, the country's state-run think tank said Thursday.

The Korea Development Institute (KDI) said in its monthly economic report that the economy stayed in a low growth level owing to weak investment and slump in the manufacturing sector.

The KDI, however, noted that a semiconductor production posted a big increase despite the reduced output in the overall mining and manufacturing industries, adding that some of economic data hinted at the easing of economic slowdown.

Production in the mining and manufacturing industries shrank 0.3 percent in November from a month earlier, but it was down from a 2.1 percent decline in the previous month.

It was attributed to a rebound in semiconductor production, which jumped 30.9 percent in November after growing 11.7 percent in October.

The cyclical factor for leading economic indicators, which measure outlook for future economic situations, rose to 99.2 in November from 98.8 in October.

The KDI said private consumption also showed signs of the eased downturn.

Retail sales expanded 3.7 percent in November from a month earlier, while production in the services sector gained 2.5 percent in the month.

Corporate investment and production among manufacturers remained soft amid the lingering external uncertainties.

Export, which takes up about half of the export-driven economy, slipped 5.2 percent in December from a year earlier, after reducing 14.4 percent in the previous month.