A woman walks along a snow-covered street in front of City Hall during snowfall in Seoul on January 26, 2023. (Photo by Jung Yeon-je / AFP)
Seoul: The South Korean economy remains sluggish amid ailing exports, but its downward trend has been moderated due to a recovery in its domestic consumption, a state-run think tank said yesterday.
“Due to challenging external conditions, exports continued to decrease sharply, centering on semiconductors,” the Korea Development Institute (KDI) said in its monthly report.
According to Yonhap, South Korea’s exports fell for the seventh consecutive month in April due mainly to sagging global demand for semiconductors. Outbound shipments of chips plunged 41 percent on-year amid the downcycle of the industry.
“Manufacturing production and shipments continued to decline, while related business sentiment indices stood at low levels, indicating persistent weakness in economic activity,” it added.
The KDI, however, said the economy’s steep decline has been “somewhat tempered by a moderating slump in domestic demand.” “Retail sales experienced an easing of contraction led by automobiles, while services production sustained favorable growth backed by increased demand for tour activity,” the institution said.
