South Korean economy improves, consumption remains weak

South Korean economy improves, consumption remains weak

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The economy of South Korea improved in July 2013 and August 2013, compared to the second quarter of 2013 in terms of increased exports and facility investment. However, on August 28, 2013, the central bank said that the consumption in the country still remained weak.

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Since the fourth quarter of 2012, it has been noticed that the country has been slowly recovering as its overseas shipments are faring well. The Bank of Korea (BOK) – in a newly issued report, also known as the BOK Golden Book – mentioned that the situation has improved, despite the weakness of yen.

The Korean version of the Beige Book of the US Federal Reserve was released for the first time and it is based on monitoring of seven regional areas’ economic conditions. The BOK Golden Book is set to be released in the middle of every quarter of the year. The director general at the BOK’s research development, Shin Woon in a press conference said, “Monitoring results showed that economic conditions are not much different from the BOK’s growth path previously estimated”.

Earlier, the central bank mentioned that the local economy is expected to improve around 1 percent every quarter until 2014 and also added that it is most likely going to grow 2.8 percent in 2013. However, despite the economic recovery, the Korean economy will face certain risks like uncertainty over the bond-buying tampering of the Federal Reserve.

Photo Credits: Naharnet