S. Korean economy on verge of recovery: finance ministerBy Yonhap
Published : Sept. 4, 2023 - 09:17
The South Korean economy is on the verge of recovery despite some monthly volatility, the finance minister said Monday, with exports showing continued signs of improvement.
"South Korea's economy has recently witnessed some monthly fluctuations, but in general, it is building ground at an entryway of recovery," Finance Minister Choo Kyung-ho said during a meeting with economy-related ministers.
While South Korea's industrial output lost ground on-month in July, Choo attributed the retreat to temporal factors, such as weather conditions, noting the country has been showing signs of a recovery in exports.
South Korea's exports fell for the 11th consecutive month in August due mainly to weak demand for semiconductors and petroleum products, but the country reported a trade surplus for the third straight month.
"Despite the summer vacation season, exports in August narrowed its drop from a month earlier, led by a recovery in the chip segment," Choo said. "Exports to China in August also recovered to the $10-billion mark."
Chip exports reached $8.6 billion in August, hovering above the monthly average of $6.9 billion and $7.5 billion posted in the first and second quarter, respectively.
"In September, we expect the decline in exports to narrow additionally while maintaining a trade surplus. We anticipate a growth in outbound shipments within the fourth quarter," Choo added.
The finance minister, however, noted South Korea should refrain from being "too optimistic," considering uncertainties stemming from China.
The government will spare no efforts to bolster the growth momentum in exports while revitalizing tourism to promote domestic demand, he added. (Yonhap)
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