Domestic Consumption Shrinks, Export Brisk

Increase in domestic consumption that has lead domestic economy since last year is wavering, on the other hand, export and investment shows full- scale recovery.

Following this, it is expected that Korean economy is retuning back to traditional growth pattern in which export and investment drag up growth.

National Statistics office announced `Business trend in April` on 29th that contains aforesaid.

△ Steady economic recovery= industry production increased 7.3 percent than April last year, as manufacturing car, semi conductor and communication devices increased.

Aggregate from January to April increased 4.9 percent than last year; therefore, it showed 1.0 percent increase than 3.9 percent which is aggregate till March.

Assistant of vice-Minister of MOFE, Kwon oh-Gyu evaluated, “ rising trend of manufacturing industry is still steady”.

Shipment of April increased 9.2 percent in domestic consumption and 13.2 percent in exports; therefore, it showed favorable tone as it increased 10.9 percent comprehensively.

However sale of wholesale and retail that is index of consumption increased 7.7 percent

that is 0.6 percent points lower than March.

However, MOFE showed cautious attitude still “we should judge settling domestic consumption after observing till May”.

▽ Balanced growth of export and domestic consumption= export is continuing high rise trend in May, too, in succession with 9 percent increase in April.

Blank ink balance is expected to increase highly to 1.5 billion dollars in May from 30 million dollars in April.

Facility investment showed slow recovery of 2.1 percent increase in April.

However, actual income of machinery industry, which decreased in March, increased 26 percent, therefore, it shows mind of companies that is investing in facilities to turn into recovery.

Assistant vice-minister, Kwon prospected, “ domestic consumption that has lead growth so far, is relatively withered, on the contrary, traditional tool of growth like export and investment can lead economy in latter this year”.

Government will confirm policy for latter this year holding economy meting for examination in the beginning of next month, following above.

Rae-Jeong Park ecopark@donga.com