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Modest growth continues on robust exports: KDI

All News 12:00 June 07, 2018

SEJONG, June 7 (Yonhap) -- South Korea's economy is maintaining its modest rate of expansion on the back of exports, although a recovery in private spending has slowed, a state-run think tank said Thursday.

"The Korean economy sustained modest growth driven by robust exports although growth in domestic demand is slowing gradually," the Korea Development Institute (KDI) said in its monthly evaluation of the country's economic conditions.

The institute said export growth rose in May over the previous month, particularly in semiconductors, helping to buffer some of the slow growth in domestic demand.

"Growth in retail sales remained strong, but improvement in consumption-related services production has been limited," it added.

The country's industrial output rose 0.9 percent on-year in April, following a 4.0-percent on-year dip the previous month.

Retail sales gained 5.3 percent in April from a year earlier. The services production index rose but there was limited improvement in wholesale and retail trade and accommodation and food services, which are closely tied to service consumption.

Facility investment rose 0.6 percent in April, a turnaround from the previous month's 0.1 percent retreat.

On the exports side, May's outbound shipments jumped 13.5 percent, compared with a 1.5 percent on-year dip the previous month, aided by continued growth in exports of chips and petrochemical goods, the KDI said.

This image shows the KDI logo superimposed over photos of shipping containers and cars at a South Korean port. (Yonhap)


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