SEOUL, Feb 13 (YONHAP/APP): South Korea’s economy continues to be on the path to recovery, supported by stronger domestic demand and a solid performance in the semiconductor sector, despite ongoing uncertainties, the finance ministry said Friday.
The Ministry of Economy and Finance made the assessment in its monthly economic report, known as the Green Book, marking the fifth consecutive month it has used the term “recovery” to describe the economic situation.
“Recently, our economy has continued its recovery trend, driven by improved domestic demand, including consumption, and strong exports led by semiconductors,” the report said.
Still, uncertainties remain, the ministry noted, citing ongoing employment difficulties in vulnerable sectors, such as construction.
The report also cited the continued impact of U.S. tariff measures and other external risks as sources of concern.
“The global economy faces ongoing volatility in international financial markets and energy prices, along with slowed trade and growth, due to worsening trade conditions from tariffs by major countries and geopolitical uncertainties,” the report said.
In January, exports expanded 33.9 percent from a year earlier to US$65.85 billion on strong demand for semiconductors amid a global artificial intelligence (AI) boom.
Industrial output rose 1.5 percent from the previous month in December, while retail sales increased 0.9 percent, rebounding from a decline in November.
Consumer prices, a key gauge of inflation, rose 2 percent on-year in January, the slowest pace in five months, partly helped by the steady prices of petroleum products.
In January, the number of employed people rose by 108,000, marking the slowest on-year growth in 13 months. Last month’s modest increase underscored a prolonged slump in the manufacturing and construction sectors, while youth employment fell for the 21st consecutive month, highlighting continued challenges for young job seekers.
Looking ahead, the government said it will continue active macroeconomic policies and efforts to stimulate consumption, investment and exports to sustain the momentum of economic recovery.