Korea’s industrial output grew at a much slower pace in December in the face of persistent global economic uncertainties, a government report showed Tuesday.
According to the report by Statistics Korea, production in the mining and manufacturing industries moved up 2.8 percent last month from a year earlier, slowing from a 5.8 percent gain in November.
Industrial production, however, fell 0.9 percent on-month in December, marking the third month in a row that numbers declined.
In November, it shrank 0.3 percent, the report said.
“Last month’s weak output was due to minus growth in the audio-video and communication, machinery, metal and beverage sectors,” the statistical office said.
The country’s service sector expanded a mild 1.6 percent on-year in December, helped by demand in the transportation and education areas although zero growth was posted compared to the month before.
For the whole of 2011, industrial output in mining and manufacturing rose 6.9 percent on-year, with the service sector posting a gain of 3.2 percent.
The latest data also showed retail and construction sectors gained 1.5 percent and 0.5 percent, respectively, compared to December 2010, while facility investments contracted 2.1 percent from the year before.
Reflecting the overall sluggish output, the country’s factory operating rate fell 1.5 percentage points from the previous month to 77.6 percent of capacity in December, with inventory gaining 2.8 percent vis-a-vis the previous month.
The report also showed industrial output for all South Korean industries, including the manufacturing, construction and services sectors, growing 1.9 percent last month, down from a gain of 3.4 percent in November.
The finance ministry said last month’s industrial output mirrored current economic uncertainties facing South Korea and the rest of the world.
“The growing likelihood of slower global economic growth brought on in part by the eurozone debt crisis and economic worries facing advanced industrialized countries is expected to contribute to uncertainties down the road,” it said.
The concerns come as the government earlier revised down its growth outlook for next year from 4.5 percent to 3.7 percent in 2012, which is lower than the 3.8 percent growth projected for last year.
The International Monetary Fund also adjusted its global growth forecast from 4.0 percent to 3.3 percent.
The ministry, in charge of the country’s overall economic policies, said that it will keep close tabs on economic developments taking place inside the country and abroad, and take necessary steps to best cope with any fallout.
With overseas conditions likely to remain volatile, South Korea needs to do more to build up its domestic economy that is less affected by outside changes, it added.
(Yonhap News)
