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Economy ministry: ‘Korean economy remains in slump for 7 consecutive months’

Economy ministry: ‘Korean economy remains in slump for 7 consecutive months’

Posted October. 19, 2019 07:37,   

Updated October. 19, 2019 07:37


The Korean economy has remained in a slump for seven consecutive months, according to a government report.

In its recent economic trend report (Green Book) released on Friday, the Economy and Finance Ministry said, “The economy continued to maintain growth in production, but export and investment remained in a slump in August.” The Green Book contained the expression‎ “slump” for seven consecutive months since April this year. This is the longest slump since the four-month period between October 2016 and January 2017 when the Korean economy was reeling from the MERS epidemics. The monthly Green Book officially suggests the government’s perception towards the Korean economy.

According to the Green Book, the Korean economy has been struggling in the areas of investment and export externally as the Japanese government’s export restrictions remain in effect while uncertainties due to U.S.-China trade dispute linger. The Korean semiconductor industry remains lackluster as well, causing companies to experience slowdown in facilities investment and export. However, consumer sentiment and corporate sentiment improved in September from the previous month, while facilities investment and expenditures increased, which can be considered a positive move.

Meanwhile, meeting with executives of international rating agencies including Standard & Poor’s and Pitch in Washington D.C., the U.S. on Thursday, South Korean Deputy Prime Minister for Economy Hong Nam-ki said, “The Korean government will use all policy measures at its disposal to achieve economic growth of a 2 percent level this year.”

Jun-Il Kim jikim@donga.com