The economic slowdown in South Korea has receded

The South Korean economy has seen a gradual easing of deflation amid signs of improvement in semiconductor production and exports and a recovery in the services sector, although external uncertainties persist.
“The economic slowdown has gradually subsided, as production and exports in manufacturing, led by the chip industry, have shown signs of improvement, and the service sector and labor market continue to improve,” the Ministry of economy and Finance said in the economic assessment report called “Green Book”yesterday.
According to the Korean news agency “Yonhap”, the ministry indicates the decline in the economic slowdown in its monthly report since August.
Exports, a key driver of economic growth in South Korea, fell for the 12th consecutive month in September, but recorded the smallest year-on-year decline so far this year.
Semiconductor exports fell by 13.6 percent year-on-year, representing a decline for the 14th consecutive month. But September saw the highest monthly export value of 9.9 billion dollars so far this year, according to government data.
However, the ministry warned of continued uncertainty caused by the Russian – Ukrainian war, the Palestinian – Israeli conflict, rising oil prices, and tight monetary tightening by the Fed.Regarding inflation, the ministry said that “the country has experienced a gradual downward trend in prices, although in September consumer prices recorded the highest year-on-year increase of 3.7 percent in five months”.The government expected inflationary pressures to start easing around October. It set a target for this year of a 3.3 percent increase.