The Korean economy is showing signs of weakness from the subdued outlook for global growth and uncertainties over the European debt crisis, the Finance Ministry said Tuesday.
In its monthly economic assessment, the ministry cited slowing industrial output, export growth, job creation and facility investment as evidence of slowing economic momentum. It also warned of persistent price pressure which could worsen with rising import costs.
“Our economy keeps recovering but some indicators are weakening somewhat. There are also lingering factors that could destabilize prices.”
“Uncertainties continue due to such factors as the eurozone debt crisis and a possible economic slowdown in major countries,” the report said.
The ministry said the government will continue to put its utmost priority in price stabilization and continued economic growth. It currently projects the economy to expand 4.5 percent next year.
The economy expanded 0.7 percent in July-September period, far below the forecasts for an increase of 1.5 percent after a 0.9 percent gain in the previous three months. The ministry expects October retail sales growth to slow to 3.8 percent from a year ago, down from a 6.5 percent on-year growth in September.
By Cynthia J. Kim (
cynthiak@heraldcorp.com)
