The reports revealing the latest economic outlook of the south Korea indicate that the export and factory productions are on the rise, and so also the consumer prices are becoming steady. According to the Green Book of economic report from the Ministry of Economy and Finance in South Korea, every month evidence shows that the South Korean economy has soon begun recovering from the sty mergic shock while the consumer price stabilizes and domestic demand improves.
China’s exports were up 24.6% yoy during the first 10 days of September and reached $18.58 billion mainly on the back of strong demand for semiconductors. Exports per day rose to $2.48 billion, 16.3 per cent higher than the same period of previous year, while imports grew by 11.3 per cent to reach $18.4 billion, leading to a trade surplus of $200 million.
Annual inflation has finally dropped to the government’s projected 2.0% in August — the slowest uptick in 41 months. This has created more pressure to the Bank of Korea (BOK) on the possibility to switch to the side of monetary easing. The August inflation data has strengthened opinion that the central bank might have failed to choose the right time for lowering interest rates, given that the country’s economic growth rate decelerated in the second quarter.
KT confirmed the BOK’s statement that with Asia’s fourth-largest economy expanding 2.3 percent year on year in the April-June period, was largely due to softer household expenditure and private corporate capital spending. It has raised prospect of a rate cut in the months to come thus putting a lot of pressure on the central bank.
The Finance Minister, Choi Sang-mok accompanied by his assurance to work intimately with Bank of Korea to rapidly implement the market stabilizing measures in case of required has recently moved following the recent cut in interest rates by the U.S Federal Reserve. In the meantime, the government is also giving attention to skyrocketing the household debt and the payment crisis of electronic commerce.
To revive the economy the government has laid down four strategic themes for policy direction in 2024 including: people’s livelihoods recovery, risks control measures, dynamic economy realization, and youths towards a sustainable future. From the ‘Livelihood Stabilization Measures ahead of Chuseok’, the administration is carrying out the key policy tasks and advancing the ‘Dynamic Economy Road Map ‘to upgrade people’s welfare and in order to make the Korean economy more sustainable.
Due to this, the government is increasing the pace of providing support measures for small business owners so that they can quickly join the trend of economic recovery. A total of 241.3 billion won has already been donated in a three-part financial aid plan that has been established, and concerns for debt collection, especially this Chuseok celebrations, have been eased since the criteria for debt adjustment through the New Start Fund have been widened.
At the same time there are obstacles on the Korean economic growth path Following the global tendencies the Korean economy demonstrates a tendency toward recovery. Geopolitical risks such as the enduring Russia and Ukraine war and future escalation of conflict in the Middle East keep the global economy uncertain. The government continues to pay close attention to such external considerations and their effects on the home economy.
Currently, South Korea has to consider its economic development and stabilization, the level of household credit, and the development of the most sectors. The forthcoming months would be decisive for the further continuation of the recovery process in the country and the facing of the future outstanding issues of the constantly transforming world economy.
