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According to a recent economic forecast report called the Green Book, released by the Ministry of Strategy and Finance (MOSF) on Tuesday, the MOSF noted that the Korean economy is likely to grow as key indices improve, however, domestic and external downside risks, including the United States’ reduced quantitative easing and a sluggish housing market, exist.
According to the Green Book, most real economic indices, including those for mining and manufacturing production, consumption and investment, improved from last month. In addition, the indices of the service industry, consumption and construction investment in the second quarter showed a gradual improvement from the first quarter.
The number of jobs in June increased by 360,000 over the same period last year. By industry, job growth in the manufacturing industry slowed, but the service industry showed increased growth in employment and the construction industry also showed an increasing trend. As demand for automobiles and refined oil increased, the number of jobs in the mining and manufacturing industries rose by 0.4 percent from May.
Retail sales grew by 0.9 percent from last month with more sales of durable and nondurable goods despite a fewer number of quasi-durable goods sold. Consumer prices for agricultural and oil products also grew compared to last month, however the increase remained at the 1 percent level.
On the other hand, production from the service industry dropped by 0.1 percent from June, and consumer prices also rose by 1.4 percent year-on-year with higher prices for agricultural and oil products.
The MOSF forecast that the global economy will show a gradual recovery, however risks from the United States’ reduced quantitative easing and a slowed Chinese economy exist. The ministry will monitor domestic and global economic circumstances and reinforce efforts to facilitate the economy and promote investment.
Source: Newsis (Aug. 6, 2013)
** This article was translated from the Korean.