South Korea's economy remains in the "recovery phase" as exports, consumption and other indicators are rebounding fast, driven in part by eased instability in overseas markets, a state-run think tank said Sunday.
"As the rising export trend continues in the Korean economy, private consumption and investment improved substantially, maintaining the overall economy in the recovery phase," the Korea Development Institute (KDI) said in its monthly economy-assessment report.
The assessment is in line with the government's recent report that said the Korean economy is making a "better-than-expected" recovery, though uncertainties still remain at home and abroad.
Industrial output maintained its upward trend, while consumption improved in recent months, indicating both companies and consumers are less worried about the future economic outlook, according to the report.
Adding to the upbeat figures, businesses increased their investments in equipment. Construction activities also picked up, with the value of construction completed rising 6 percent in September, a turnaround from negative 6 percent in the previous month, the report showed.
The labor market improved as well, easing concerns over protracted frozen employment conditions.
The nation's seasonally adjusted unemployment rate stood at 3.6 percent in September, down from the previous month's 3.4 percent. The number of employed people increased by 71,000 compared to a year ago.
External market conditions are also rebounding as economic recessions in major countries are steadily easing, according to the report.
"The U.S. economy is edging closer to recovery by registering a quarter-on-quarter economic growth rate of 0.9 percent for the third quarter as its housing economy stabilizes and its consumption improves despite continuing low employment," the report said.
"Eurozone appears to be bottoming out from the severe recession with its production and major sentiment indexes improving, despite signs of continued uncertainty about the real economy in the future," it added.
The report, however, stopped short of mentioning when and how South Korea should unwind expanded state spending, low interest rates and increased liquidity in the market as debate is brewing over the timing of so-called exit strategies.
Finance Minister Yoon Jeung-hyun earlier said that the government will maintain its macroeconomic policy stance until a sustainable economic recovery is assured. The nation's central bank kept its key interest rate at a record low of 2 percent in its latest rate-setting meeting.
(Source: Yonhap News)
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