Ministry of Finance and Economy: Exports are strong, but inflation and employment are placing a growing burden on people's livelihoods

The Ministry of Finance and Economy 12said in the 'Recent Economic Trends (6 issue)' it released that concerns about the burden on people's livelihoods are growing due to rising prices and slowing employment despite strong exports. This is important information for investors because it could directly affect household consumption and corporate performance.

The report assessed that the economic recovery trend is continuing, driven by strong exports and improvements in consumption and business sentiment. However, it noted that external uncertainties, including the war in the Middle East, persist.

After reviving the phrase 'downside risks to the economy' in its 3 issue for the first time in 8 months, it retained the expression through the 5 issue, but in this 6 issue it changed the wording to 'uncertainties persist.'

Jo Seong-jung, director of economic analysis, still identified the possibility of a prolonged war in the Middle East as a downside risk factor. On the other hand, he explained that major international institutions were raising their forecasts for South Korea’s growth rate, reflecting strong semiconductor-led exports.

4Monthly industrial activity was somewhat sluggish. Mining and manufacturing stood at -0.7%, while the service sector came in at -1.0%.

The construction sector stood at -1.4%, while total industrial production fell 0.6% from the previous month.

Facility investment and retail sales each fell 3.6%.

However, compared with the same month a year earlier, total industrial production increased by 2.4%.

Facility investment increased by 8.1%, while retail sales increased by 1.6%.

On the other hand, 5monthly exports showed year-on-year growth, buoyed by increased exports of semiconductors, computers, and ships.