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Economic growth seen to be moderating on slower private spending: KDI

All News 12:00 July 10, 2018

SEJONG, July 10 (Yonhap) -- South Korea's economy is maintaining its modest rate of expansion on the back of exports, although the recovery in private spending has slowed, a state-run think tank said Tuesday.

"The overall pace of economic improvement appears to be moderating as Korea's export growth remains steady but growth in domestic demand is slowing," the Korea Development Institute (KDI) said in its monthly evaluation of the country's economic conditions.

The institute said export growth decelerated in June, but it was due to a base effect.

The country's industrial output rose 0.9 percent on-year in May, following a 0.8 percent on-year rise the previous month.

But the retail sales growth rate and consumer sentiment index stalled and service sector production remained stagnant, a sign that improvement in consumption is slowing gradually.

Retail sales gained 4.6 percent in May from a year earlier, decelerating from the previous month's 5.5 percent on-year rise. The services production index gained 2.3 percent in May, compared with a 2.7 percent on-year rise.

Facility investment dipped 4.1 percent in May, a turnaround from the previous month's 1.3 percent advance.

On the export front, June's outbound shipments declined 0.1 percent, compared with a 13.2 percent on-year surge the previous month. But the on-year dip was due to a base effect, 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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