The government has voiced concerns for a second consecutive month that the economic slowdown could continue in the wake of deteriorating external economic conditions.
In its monthly assessment report on Wednesday, the finance ministry said that despite a mild recovery in domestic demand, it continues to have concerns about an ongoing slowdown as inflation expands and export growth becomes limited.
The assessment echoes the ministry’s evaluation last month when it expressed such concerns for the first time since the pandemic began.
The latest report assessed that rising inflation, the U.S. Federal Reserve’s fast rate hikes, China’s economic stagnation and the prolonged Russia-Ukraine war have further increased global market volatility and downside risks.
At home, consumer prices jumped six percent in June from a year earlier, the fastest rise in nearly 24 years.
Growth in outbound shipments last month slowed to five-point-two percent on-year, while inbound shipments jumped 19-point-four percent due to oil prices. The nation posted a record deficit of ten-point-three billion dollars for the January-to-June period.
Source: KBS World Radio