By Kang Yoon-seung
SEOUL, Sept. 15 (Yonhap) — The Ministry of Economy and Finance reported on Friday that South Korea’s economic downturn is gradually subsiding due to a resurgence in exports, including semiconductors, as well as an upsurge in consumer sentiment and employment.
Exports dropped for the eleventh consecutive month in August due mainly to weak demand for semiconductors and petroleum products, however the nation still managed to report a trade surplus for the third month in a row.
Inflation continues to decline, although there is still some volatility in raw materials prices. Consumer prices, a key indicator of inflation, increased 3.4 percent in August from the same period last year, the highest rate since April’s 3.7 percent growth.
Core inflation, which excludes volatile food and energy prices, rose 3.3 percent year-on-year in August, the same as in July.
The finance ministry said there is a growing optimism for the recuperation of the global IT industry, with the resumption of Chinese group tours to South Korea also expected to help the economy.
However, the prolonged war between Russia and Ukraine, along with the heightened fears of an economic slowdown in major countries and their monetary tightening measures, may impede the recovery, it added.
colin@yna.co.kr
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