govt-economic assessment

Economy feared to slow on weak exports: ministry

SEOUL, Oct. 14 (Yonhap) -- The South Korean economy is enjoying a recovery in domestic demand, but external factors are feared to continue to hurt exports, leading to slow economic growth, the finance ministry said Friday.

The outlook came as inflation, global rate hikes and the protracted war between Ukraine and Russia have increased volatility in the global financial market, the Ministry of Economy and Finance said in its monthly economic assessment report, called the Green Book.

"The domestic demand has been improving gradually following the recovery in employment and the face-to-face service industry," the report said, but it pointed out that inflation also continued amid lingering concerns over a slowdown in exports.

In September, South Korea's exports advanced 2.8 percent while suffering a trade deficit for the sixth consecutive month on high global energy prices.

Following the trade deficits, South Korea's current account shortfall came to US$3.05 billion in August, a sharp turnaround from a surplus of a revised $790 million tallied a month earlier.

The government, however, said the current account might improve in September, considering a narrowing trade deficit.

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