NEWS
Current Economic Trends 2018. 2.
Writer
관리자
Posted at
2018-03-19
Overview
The Korean economy continues to recover as exports have been strong. Industrial production and investment have been improving for two consecutive months, and consumption fell due to a high base effect from the previous month.
The economy added 253,000 jobs year-on-year in December 2017. Manufacturing and construction led the increase, while service job growth slowed down. Young adult unemployment rose (up 8.4% → up 9.2%, y-o-y).
Consumer price inflation in January 2018 fell 0.5 percentage points from the previous month (up 1.5% → up 1.0%, y-o-y). Month-on-month, consumer prices rose 0.4 percent due to high agricultural product prices.
Industrial production rose for the second consecutive month in December (up 1.3% → up 0.2%, m-o-m). Mining and manufacturing production fell (up 0.2% → down 0.5%, m-o-m) due to a slowdown in automobiles and mechanical equipment. Service output continued to improve (up 2.5% → up 0.2%, m-o-m) backed by increasing stock transactions and R&D expenditures.
Retail sales fell in December (up 5.7%→ down 4.0%, m-o-m) due to a slowdown in durable and semi-durable goods sales: Sales of automobiles and clothing dropped.
Facility investment increased for the second consecutive month in December (up 10.4% → up 8.9%, m-o-m) as imports of semiconductor manufacturing equipment rose. Construction investment continued to fall (down 2.4% → down 0.3%, m-o-m) despite strong civil engineering works as building construction slowed due to falling housing construction orders received.
In December, the cyclical indicator of the coincident composite index fell 0.3 points from the previous month to 100.1, and the cyclical indicator of the leading composite index stayed unchanged at 101.2.
Exports increased for the15th consecutive month in January (up 8.9% → up 22.2%, y-o-y) backed by strong major export items amid the recovering global economy, such as semiconductors, as well as due to increased days worked as the Lunar New Year holiday fell in February, which is later than a year ago when it fell in January.
In January, KOSPI rose backed by foreign net buying and the bullish global market. The dollar-won exchange rate fell amid the weak dollar. Government bond yields rose.
Housing prices continued to rise in January (up 0.11% → up 0.14%, m-o-m) as the prices rose in the Seoul metropolitan area, and Jeonse (lump sum deposits with no monthly payments) prices slowed down (down 0.03% → down 0.05%, m-o-m) due to increased supplies.
The economy is expected to stay on a recovery path given improving global economies and strong exports. However, young adult unemployment has been rising, and external risks linger, such as trade issues and major economies’ monetary policy normalization.
The government will strengthen its risk management and work to successfully implement the 2018 economic policies, focusing on helping the current economic recovery to lead to job creation and improvement in the real economy.
The Korean economy continues to recover as exports have been strong. Industrial production and investment have been improving for two consecutive months, and consumption fell due to a high base effect from the previous month.
The economy added 253,000 jobs year-on-year in December 2017. Manufacturing and construction led the increase, while service job growth slowed down. Young adult unemployment rose (up 8.4% → up 9.2%, y-o-y).
Consumer price inflation in January 2018 fell 0.5 percentage points from the previous month (up 1.5% → up 1.0%, y-o-y). Month-on-month, consumer prices rose 0.4 percent due to high agricultural product prices.
Industrial production rose for the second consecutive month in December (up 1.3% → up 0.2%, m-o-m). Mining and manufacturing production fell (up 0.2% → down 0.5%, m-o-m) due to a slowdown in automobiles and mechanical equipment. Service output continued to improve (up 2.5% → up 0.2%, m-o-m) backed by increasing stock transactions and R&D expenditures.
Retail sales fell in December (up 5.7%→ down 4.0%, m-o-m) due to a slowdown in durable and semi-durable goods sales: Sales of automobiles and clothing dropped.
Facility investment increased for the second consecutive month in December (up 10.4% → up 8.9%, m-o-m) as imports of semiconductor manufacturing equipment rose. Construction investment continued to fall (down 2.4% → down 0.3%, m-o-m) despite strong civil engineering works as building construction slowed due to falling housing construction orders received.
In December, the cyclical indicator of the coincident composite index fell 0.3 points from the previous month to 100.1, and the cyclical indicator of the leading composite index stayed unchanged at 101.2.
Exports increased for the15th consecutive month in January (up 8.9% → up 22.2%, y-o-y) backed by strong major export items amid the recovering global economy, such as semiconductors, as well as due to increased days worked as the Lunar New Year holiday fell in February, which is later than a year ago when it fell in January.
In January, KOSPI rose backed by foreign net buying and the bullish global market. The dollar-won exchange rate fell amid the weak dollar. Government bond yields rose.
Housing prices continued to rise in January (up 0.11% → up 0.14%, m-o-m) as the prices rose in the Seoul metropolitan area, and Jeonse (lump sum deposits with no monthly payments) prices slowed down (down 0.03% → down 0.05%, m-o-m) due to increased supplies.
The economy is expected to stay on a recovery path given improving global economies and strong exports. However, young adult unemployment has been rising, and external risks linger, such as trade issues and major economies’ monetary policy normalization.
The government will strengthen its risk management and work to successfully implement the 2018 economic policies, focusing on helping the current economic recovery to lead to job creation and improvement in the real economy.