By Kang Yoon-seung
SEOUL, Sept. 7 (Yonhap) — Despite the 11th consecutive month of decreased exports, South Korea’s economy is showing signs of improvement, according to a state-run think tank on Thursday.
The Korea Development Institute (KDI) noted that although the decline in semiconductor exports is decelerating, other categories are also exhibiting signs of better export performance.
However, the researcher said economic uncertainties are “escalating,” mostly due to China’s economic instability, along with the growing inflationary pressures, caused by the hike in global crude prices.
“The Chinese economy faces growing downside risks, such as financial instability in real estate firms and sluggish real estate investment,” the KDI said. “Furthermore, the increase in consumer prices, driven by rising international oil prices, could partially hinder the alleviation of economic downturns.”
The KDI noted that the manufacturing output is showing signs of improvement, driven by the semiconductor sector, and the underlying trend of slowing inflation is continuing, despite some seasonal factors.
South Korea’s consumer prices increased at a faster-than-expected pace in August due to higher prices of agricultural and manufactured goods, rising 3.4 percent on-year. It was the highest on-year jump since the 3.7 percent growth tallied in April.
“Considering that the expanded increase in consumer prices can be explained solely by the changing contributions of volatile petroleum and agricultural products, it is difficult to posit this as a change in the overall inflationary trend,” the KDI added.
Shipping containers are stacked at a pier in the southeastern port city of Busan on Sept. 1, 2023. (Yonhap)
colin@yna.co.kr
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