South Korean Gov't Sees Economic Downturn for 3rd Month

The country's Ministry of Economy and Finance said in its monthly report, called Green Book, that the South Korean economy continued to see a slowdown centering on the manufacturing industry, affected by the slump in export and facility investment.

The ministry noted that domestic demand gradually recovered due to the increased face-to-face activities amid the slowing headline inflation.

It added that uncertainties continued over the global economy owing to the monetary tightening and the prolonged Russia-Ukraine conflict.

South Korea's export retreated for the sixth successive month in March mainly due to weaker semiconductor demand, resulting in trade deficit for 13 months in a row.

Production in the mining and manufacturing sector shrank 3.2 percent in February from a month earlier, but output in the services industry gained 0.7 percent as the lifting of measures against the COVID-19 pandemic raised outdoor activities.

Retail sale, which reflects private consumption, advanced 5.3 percent in February compared to the previous month, while facility investment inched up 0.2 percent in the cited month.

Consumer prices rose 4.2 percent in March from a year earlier, after increasing 4.8 percent in the previous month.

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