S. Korea’s economy shows signs of improvement but domestic demand remains sluggish: KDI

KDI “반도체를 중심으로 경기 부진이 점진적으로 완화“ The Korean economy yet again shows signs of improvement thanks to a recovery in chip production. The latest promising assessment comes from a state-run think tank. Lee Soo-jin has more. South Korea’s economy is showing signs of improvement. That’s according to the Korea Development Institute in a report released by the economic think tank on Monday. The slowdown in the economy is easing as the semiconductor industry recovers. Industrial production in November surged by 5-point-3 percent on-year, largely driven by the increase in chip production. Chip production saw a sharp rise of more than 42 percent from the previous year on increased demand for AI servers. A rise in chip demand also contributed to a rise in overall exports, which were up 7-point-7 percent in November compared to the previous year. Exports overall in December were up 5-point-1 percent compared to the year before, and while that gain wasn’t quite as big as in November, the increase was larger when adjusted for the number of working days. Chip exports rose by some 21 percent on-year last month. And car exports were up nearly 18 percent, mainly on the back of increased demand for eco-friendly cars. But the economy still faces headwinds as consumption and investment remain sluggish due to ongoing high interest rates. Retail sales continued to show an on-year decline in November of 0-point-3 percent and while this was a smaller decline than the previous month, this was mostly due to the base effect and temporary auto sales. And equipment investment in November dropped even further from the previous month to around 12 percent on-year. In terms of the global economy, the KDI stated that growth is gradually slowing as production and consumption remain sluggish amid high interest rates. Over in the United States, while there was a rise in both consumption and investment, it is expected that the U.S. will see a gradual slowdown due to reduced government spending and monetary tightening. In China, the real estate market continues to see a dip in home prices despite economic stimulus policies, raising the possibility of slower growth. Lee Soo-jin, Arirang News. #KDI #Economy #Semiconductor #Recovery #경기 #경기_회복 #반도체 #회복 #Arirang_News #아리랑뉴스 📣 Facebook : 📣 Twitter : 📣 Homepage : 2024-01-08, 18:00 (KST)