South Korea’s economy shows a recovery trend. This trend continues for the fourth month now. The government confirmed this positive news. The Ministry of Economy and Finance released its monthly Green Book. This report highlights key economic indicators. The trend resumed in November last year.
Exports Drive Momentum
Robust exports are a major growth engine. Semiconductors lead this strong export performance. Demand for AI chips remains high. January saw a significant export increase. Exports grew 33.9 percent year-on-year in January. This amounted to $65.85 billion. Semiconductor shipments are a primary driver. Overseas sales of semiconductors surged. This growth reflects strong global AI demand. The year 2024 also saw record exports. Total exports reached $683.8 billion. This marks a new annual high.
Domestic Demand Gains Traction
Domestic demand is also improving. Consumer spending has shown strength. Retail sales increased in December. This was a 0.9 percent rise. Consumer sentiment is also positive. The consumer sentiment index rose in January. It reached 110.8. This figure is above the long-term average. It suggests growing optimism. This news about domestic demand is trending.
Employment Picture Mixed
Job growth continues. 108,000 new jobs were added in January. This was a year-on-year increase. However, job growth has slowed. It was lower than the previous month. Employment difficulties persist for some groups. Vulnerable workers face challenges. Youth unemployment remains a concern. Migrant workers also face exploitation risks. Efforts are underway to support these groups.
Lingering Uncertainties Remain
Challenges still exist for the economy. Construction investment recovery is slow. This sector has faced a prolonged slump. U.S. tariffs also pose a risk. Global trade faces slowdowns. Geopolitical uncertainties add to volatility. Financial markets show persistent fluctuations. These external factors create headwinds. The economic news notes these concerns.
Outlook and Policy
Growth forecasts for 2026 are around 1.9 to 2.1 percent. This reflects continued recovery. Government policy aims to sustain momentum. Active macroeconomic policies are planned. Efforts focus on consumption, investment, and exports. The goal is to broaden the recovery. Strategic growth is a key focus.
Conclusion
South Korea’s economy is trending upward. This positive news is driven by exports and domestic demand. Semiconductors play a crucial role. However, challenges persist. These include employment issues and global risks. The government remains focused on stable growth. This ongoing recovery is a key development now.
