South Korea’s economy records new slowdown

South Korea’s Ministry of Finance has reported a continued economic slowdown despite a rebound in consumption, affected by weak exports and investments in utilities.

“Recently, inflation in Korea has slowed, with domestic demand gradually recovering, as direct activities grow,” South Korea’s Ministry of Economy and Finance said according to Yonhap.

“But the economic slowdown continues to be led by the manufacturing sector due to slowing exports and investment in utilities.”

South Korea’s annual consumer price growth fell to its lowest level in March, up 4.2% year-on-year, the latest sign that inflation could slow during the year.

This is the third consecutive month that the Ministry has mentioned the economic slowdown in its monthly evaluation report, the so-called Green Book.

Earlier this week, the central bank stabilized its key interest rate at 3.5% for the second time in a row as inflation appears to be falling and fears grow due to an economic slowdown.

At the same time, South Korea’s exports fell for the sixth straight month in March due to weak global semiconductor demand, as the country suffers from a 13-month trade deficit in a row.