▲ Recent Economic Trends (Green Book)
The government has assessed the economic situation more positively than it did a month ago, stating that the trend of economic recovery is solidifying.
The government believes that domestic demand, including consumption—which had previously slowed due to factors such as the Middle East conflict—is improving, alongside significant growth in the overall economy and exports.
However, it noted that the burden on the public livelihood persists, as the repercussions of the Middle East conflict continue to lead to rising inflation and a slowdown in employment.
In its July issue of the "Recent Economic Trends" (Green Book) released today (July 15), the Ministry of Finance and Economy stated, "The recent Korean economy is showing a solidifying trend of recovery."
Following the removal of the diagnosis regarding "downside risks to the economy" in the May Green Book—a concern that had persisted since March—the ministry has further stabilized its assessment of the recovery trend in this issue, shifting from "continuing" to "solidifying."
This is interpreted as a reflection of the significant expansion in growth during the first quarter and a sharp increase in exports, coupled with improvements in domestic demand indicators such as consumption, which had previously stalled due to the impact of the Middle East conflict.
Last month, exports surged by 70.9% compared to a year ago, driven by increased shipments of semiconductors, computers, and ships.
The Consumer Sentiment Index rose by 0.5 points from the previous month to 106.6.
Domestic sales of passenger cars, which had declined for two consecutive months from April to May, also returned to growth last month, rising by 5.0%.
In May, all-industry production decreased by 0.3%.
Consumption increased by 0.1%, while investment fell by 0.1%.
In the "Economic Growth Strategy for the Second Half of 2026" announced the previous day, the Ministry of Finance and Economy projected that South Korea's real gross domestic product (GDP) would grow by 3.0% this year compared to last year.
This is 1.0 percentage point higher than the 2.0% forecast made in January.
However, regarding the public livelihood, the ministry assessed that "the burden continues."
This is because inflation and a slowdown in employment are continuing amid the impact of the Middle East conflict.
Consumer prices rose by 3.1% in May and 3.2% last month, placing a burden on households.
Although the number of employed people increased by 63,000 last month compared to a year ago, the employment rate for those aged 15 and older fell by 0.2 percentage points to 63.4%.
The Ministry of Finance and Economy stated, "We will do our utmost to stabilize the public livelihood, including managing the supply and demand of major items and controlling inflation, to minimize the impact of the Middle East conflict," adding, "We will swiftly push forward with our economic growth strategy to address structural issues such as post-war strategies, the rebound of potential growth rates, and polarization."
The ministry analyzed that while the global economy is "maintaining a moderate growth trend, concerns remain regarding inflation and slowing growth in major countries due to the impact of the Middle East conflict," and added that "uncertainties in international financial markets and energy prices also persist."
(Photo: Yonhap News)
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