Ministry of Economy and Finance data shows delay in recovery of domestic demand

On the economic front.

The authorities forecast a delay in the recovery of domestic demand as well as employment concerns, citing increasing risks at home and abroad.

Cha Yun-kyung has more.

The Ministry of Economy and Finance announced on Friday that there continue to be delays in the recovery of domestic demand and difficulties in employment in its latest economic green book, a monthly report on the South Korean economy.

The ministry stated that domestic demand had shown some signs of recovery in the six months since May last year, however, this slowed from November, in contrast to its expectations, and continues to be in the doldrums.

The falls in the indicators for domestic demand, including consumption and investment, have been worsening due to national political crisis and potential U.S. tariffs. Retail sales fell 0-point-6 percent compared to last month, and 3-point-3 percent comparing the same month last year.

Negative figures in new employment, for two months in a row, are also drawing attention. The number of young people finding work decreased by 218-thousand, the largest drop since January, 2021.

The government concluded that economic sentiment has dampened due to the expansion of domestic and external uncertainties, raising downward pressure on growth.

Cha Yun-kyung, Arirang News.