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| ▲ People shop for groceries at a supermarket in Seoul on Feb. 15, 2023 (Yonhap) |
govt-economic assessment
Economic slowdown to continue on slumping exports, higher inflation: finance ministry
By Kang Yoon-seung
SEJONG, Feb. 17 (Yonhap) -- South Korea's economy is further skewed toward a slowdown amid higher inflation and sluggish exports, the finance ministry said Friday.
"South Korea's inflation remains at a high plateau, and domestic consumption recovery is slowing down. A persistent slump in exports and deteriorating business sentiment indicate a continued economic downturn," the Ministry of Economy and Finance said.
The finance ministry has mentioned the possibility of an economic slowdown in its monthly economic assessment report, called the Green Book, for nine consecutive months.
In January, the country's trade deficit reached a monthly record high of US$12.69 billion, marking the 11th straight month of losses, primarily due to soaring energy costs. South Korea is highly dependent on energy imports.
Consumer prices, a key gauge of inflation, rose 5.2 percent in January from a year earlier, compared with 5 percent growth estimated in December. Inflation rose by 5 percent or higher for the ninth month in a row.
"Externally, there are hopes over the reopening of China, and the soft landing of the global economy," the report said. "Uncertainties (however) linger due to the monetary-tightening moves and concerns over the prolonged war between Russia and Ukraine."
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