The government’s economic diagnosis continues to show a positive trend. It assesses that while exports have surged to record levels due to the semiconductor supercycle (super-boom), domestic demand is also showing signs of improvement.
In its September 'Recent Economic Trends (Green Book)' released on the 11th, the Ministry of Economy and Finance stated, "Recently, our economy has shown a steady trend of recovery, with exports rising significantly and domestic demand such as consumption improving."
Last month, it included the phrase "the trend of economic recovery is strengthening," and this month it continued its positive assessment by stating "a steady trend of economic recovery is continuing."
This is interpreted as reflecting the judgment that the trend of economic recovery, driven by exports and consumption, has become more evident.
In fact, last month's export value reached $98.26 billion, a 68.7% increase compared to the same period last year. In particular, semiconductor exports surged by 209% year-on-year. Amid this trend, cumulative exports for the year reached $709.4 billion as of the 5th, surpassing last year's full-year performance ($709.3 billion).
Additionally, private consumption in the second quarter increased by 0.4% compared to the previous quarter and rose by 2.4% compared to a year earlier.
Accordingly, major institutional investors have recently been revising up their growth forecasts for Korea. The Bank of Korea has raised its forecast for this year's economic growth rate to 3.3%, while the Korea Development Institute (KDI) set its forecast at 3.2%.
However, the government assessed that burdens on people's livelihoods, such as rising prices and slowing employment among vulnerable groups due to the aftermath of the Middle East war, continue.
The August consumer price inflation rate rose to 3.1%, climbing back into the 3rd% range for the first time in a month.
A Ministry of Economy and Finance official stated, "To minimize the impact of the Middle East war, we will ensure thorough management of supply and demand for key items and steadily implement major policy tasks such as stabilizing prices for seasonal goods and measures to secure people's livelihoods ahead of Chuseok. We will also swiftly advance the second-half 2026 economic growth strategy to address structural issues including strategic responses, rebound in potential growth rate, and polarization."
in ECONOMY
