Doha: South Korea's economic slowdown has shown signs of "slight" improvement, largely driven by a rebound in consumer spending, despite a continued slump in the construction sector, a state-run think tank said Tuesday.
According to Qatar News Agency, the Korea Development Institute (KDI) noted in its monthly economic assessment that the economy has experienced a slight easing in its overall sluggishness, primarily due to increased consumer spending. However, the construction sector continues to show weakness, and investment in facilities also faces challenges. Manufacturing investment remains relatively sluggish as well.
The report emphasized that construction investment has notably declined, while facility investment is undergoing adjustments. Data from Statistics Korea revealed that overall industrial output stayed weak in July, with construction output dropping 14.2% year-on-year, worsening from a 12.1% decline in June.
The KDI attributed the improvement in consumer sentiment to falling interest rates and recent government-led stimulus measures, including cash handouts known as "consumption coupons." In August, the Composite Consumer Sentiment Index reached 111.4, its highest level in over seven years, driven by strong exports and optimism about the government's supplementary budget, according to the Bank of Korea.