Recent economic Green Book points to heightened uncertainties and sluggish domestic demand as downside pressures

The Finance Ministry's April assessment of the Korean economy affirms the persistent presence of risk factors including lackluster domestic consumption and U.S. import duties.

Park Jun-han covers the latest findings.

The finance ministry's latest economic report points to a sluggish recovery in domestic demand and growing global uncertainty from Washington's tariffs as key downside risks.

This assessment comes in the ministry's Green Book, a monthly report that outlines the trends in the country's economy.

According to the ministry, while the impeachment of former President Yoon Suk Yeol has reduced some internal uncertainty, external risks are growing due to the U.S. tariffs.

"The 90-day moratorium has eased some of the pressure on our economy and companies, but the 10% tariff rate is still in effect.

And then steel, automobiles, those are also subject to item-specific tariffs, so there is downside pressure."

In the Green Book, there were some signs indicating a slowdown in domestic spending.

The country's Consumer Sentiment Index dropped from February's 95.2 points to 93.4 in March.

Also, preliminary GDP data shows that construction investment in the fourth quarter of 2024 fell 4.5 percent compared to the previous quarter.

Year-on-year, construction investment was down 6.5 percent.

The ministry vowed full support to combat economic uncertainties and downside pressures.

It said it will continue to promote a strengthened economic recovery, including providing support for jobs, construction, and small businesses.

At the same time, the ministry will make every effort to respond to trade risks, such as supporting Korean companies affected by the imposition of U.S. tariffs, and expediting the supplementary budget to strengthen industrial competitiveness.

Park Jun-han, Arirang News