Exports, domestic consumption help S. Korea maintain economic recovery pace: KDI

SEJONG, April 8 (Yonhap) -- South Korea's economy is maintaining its modest rate of expansion on the back of solid exports and improved private spending, a state-run think tank said Sunday. "The Korean economy continued to grow at a moderate pace owing to exports and consumption. Mining and manufacturing production remained stagnant even after considering the influence from the Lunar New Year holiday, suggesting that the improvement in production-related indicators is limited," the Korea Development Institute (KDI) said in its monthly evaluation of the country's economic conditions. The institute said investment-related indicators moderated gradually as construction investment posted slow growth amid the weakening momentum in facilities investment. "However, external conditions stayed favorable and consumption improved, implying that a rapid slowdown in growth is highly unlikely," it said. The country's industrial output grew 1.8 percent on-year in the first two months of 2018, maintaining its recovery pace. Retail sales gained 6.3 percent in February from a year earlier, sharply accelerating from the previous month's 1.2 percent on-year rise. Facility investment soared 9.7 percent in February, decelerating from the 21.6 percent on-year expansion in January. On the exports side, February's outbound shipment growth decelerated, but exports are maintaining a decent pace of growth, according to the KDI. The country's outbound shipments in March moved up 6 percent on-year, up from the previous month's 3.9 percent gain, the KDI added. sam@yna.co.kr (END)