The government deems that concerns over an economic slowdown have expanded.
The finance ministry made the assessment in a report released on Friday on the latest economic trends, saying recovery in domestic demand has slowed down while exports and economic sentiment have continued to slip amid high inflation levels.
With the latest outlook, the ministry repeated concerns over an economic downturn for the eighth consecutive month. In making the assessment this time, however, it gave a more pessimistic outlook as it determined that such concerns had expanded.
The ministry said the risks of a global economic downturn persist due to a slowdown in key economies and the Russia-Ukraine war, noting that such risks come amid uncertainties surrounding the pace of monetary tightening policies and China’s pandemic situation.
Last month, exports shrank nine-and-a-half percent on-year, posting a decline for the third consecutive month, with imports also dropping two-point-four percent while still exceeding outbound transactions to result in a trade deficit for nine straight months.
The country's current account posted a deficit in November for the first time in three months due to a plunge in chip exports.
Source: KBS World Radio