Particle.news

Download on the App Store

South Korea’s Economy Sees Tentative Recovery Despite Persistent Downside Risks

Improved consumer sentiment and export gains underpin cautious optimism despite sluggish domestic spending.

Image

Overview

  • July’s Green Book flagged weak consumer spending, sluggish construction investment and deteriorating export conditions as downside risks for a seventh month while omitting “increasing” to soften its assessment.
  • Consumer sentiment indexes have risen and domestic credit card spending grew 4.5%, offering a boost to retail prospects.
  • Exports rebounded 4.3% year-on-year in June on strong semiconductor demand and a 28.8% surge in Chinese tourist arrivals.
  • Over 180,000 jobs were added in June—the sixth month of growth—despite ongoing layoffs in manufacturing and construction.
  • Authorities plan to start distributing consumption coupons on July 21 and are fast-tracking a 31.8 trillion-won supplementary budget to reinvigorate spending.