Economy continues on 'gradual' recovery path, yet uncertainties linger: finance ministry

The South Korean economy is gradually recovering, supported by stabilizing prices, but uncertainties remain both at home and abroad, the finance ministry said Friday.

The ministry made the assessment in its monthly economic report, the Green Book, highlighting plans to promote a road map for strengthening the sustainability of the country's economy.

"Our economy is seeing a gradual recovery amid stabilizing prices, but uncertainties persist due to changing conditions at home and abroad," the report stated.

The ministry further noted that while the global economy is on an overall recovery path, geopolitical risks in the Middle East still pose significant challenges, adding to uncertainties about potential shifts in the international trade environment.

Compared with the assessments made in the previous six months, the phrase "recovery," has been softened to "gradual recovery."

The shift in tone could be attributed to major financial institutions lowering their growth outlooks for the year after the country's real gross domestic product -- a key measure of economic growth -- gained only 0.1 percent from three months earlier in the third quarter, far lower than the market expectation of a 0.5 percent expansion.

The pace of recovery varies across sectors, the ministry added.

Key indicators of industrial activity show that while facility investments have increased, construction output has declined, and manufacturing output has adjusted after a significant rebound in the previous month, the ministry said.

Industrial output fell 0.3 percent on-month in September, also marking a 1.1 percent on-year drop, as construction and service output all lost ground.

The country's facility construction investment increased 8.4 percent on-month and 6.1 percent on-year.

Exports, a key growth engine, rose 5.4 percent on-year in September on the back of robust outbound shipments of chips and cars, according to government data. (Yonhap)