ID :
211903
Mon, 10/10/2011 - 06:43
Auther :
Shortlink :
https://oananews.org//node/211903
The shortlink copeid
External economic woes hurting export growth: think tank
SEOUL (Yonhap) - External uncertainties are hurting South Korea's exports, although steady gains in the service sector is helping to sustain domestic economic growth, a state-run think tank said Monday.
"South Korea's exports have been hurt by external developments, but overall growth is being maintained by gains in the domestic economy," the Korea Development Institute (KDI) said in its monthly report on economic conditions.
It said industrial production in August fell compared to the year before, although improvements in the local service industry has helped create jobs and lowered unemployment figures.
"Improvements in employment conditions are continuing," it claimed.
The KDI added that the country's consumer price gains have decreased from a surge of 5.3 percent in August to 4.3 percent last month.
Despite last month's dip, September's gains mark the ninth month in a row that the country's consumer price growth exceeds the government's annual inflation target of 4 percent. Higher consumer prices can offset overall economic gains and can fuel stagflation worries.
On the country's stock and foreign exchange markets that have been rocked by increased volatility, the KDI expressed concerns that a slowdown in the global economy, triggered in part by the financial crisis unfolding in some European economies, will exert negative influence down the road.
"South Korea's exports have been hurt by external developments, but overall growth is being maintained by gains in the domestic economy," the Korea Development Institute (KDI) said in its monthly report on economic conditions.
It said industrial production in August fell compared to the year before, although improvements in the local service industry has helped create jobs and lowered unemployment figures.
"Improvements in employment conditions are continuing," it claimed.
The KDI added that the country's consumer price gains have decreased from a surge of 5.3 percent in August to 4.3 percent last month.
Despite last month's dip, September's gains mark the ninth month in a row that the country's consumer price growth exceeds the government's annual inflation target of 4 percent. Higher consumer prices can offset overall economic gains and can fuel stagflation worries.
On the country's stock and foreign exchange markets that have been rocked by increased volatility, the KDI expressed concerns that a slowdown in the global economy, triggered in part by the financial crisis unfolding in some European economies, will exert negative influence down the road.
