SEOUL– South Korea’s economic recovery momentum has weakened due to the slowdown in the manufacturing sector amid a global supply chain shortage and energy crisis, a state-run think tank said Sunday.
“The recovery in manufacturing weakens as global supply chains remain clogged, since an improvement of external conditions lost steam,” the Korea Development Institute (KDI) said in a monthly economic assessment report.
The manufacturing firms’ shipments have fallen, while the inventory-to-shipment ratio has risen recently, the institute said, noting supply chain disruptions and rising prices of raw materials put increasing downward pressure on the global economy.
But the service industry has rebounded, as domestic demand has grown on the back of eased antivirus curbs and emergency relief grants, the KDI said.
“As the government eased many of the social distancing rules and laid out a phased plan for economic reopening, the economy is expected to continue a moderate recovery led by domestic demand, despite potential constraints lingering in manufacturing,” the report read.
South Korea began implementing its “living with COVID-19” scheme this week and eased monthslong strict social distancing rules based on the high vaccination rate and stable containment.
Health authorities said more than 75 percent of the country’s 52 million population has been fully vaccinated so far.
Source: Yonhap News Agency