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Economy faces 'increasing' downward pressure on weak exports, sluggish consumption

Published: 16 May. 2025, 12:26

Containers are waiting to be shipped at a port in Busan on April 30. [YONHAP]

The Korean economy is facing "increasing" downward pressure due largely to a slowdown in exports amid lingering trade uncertainties and a decline in domestic consumption, the Ministry of Economy and Finance said Friday.

It marks the fifth consecutive month the Finance Ministry has made such an assessment in its monthly economic report, the Green Book.

In the May edition, the ministry also noted a "slowdown in exports" for the first time, reflecting concerns over an exacerbating global trade environment fueled by U.S. tariffs on steel, automobile and other imports.

The report said Korea saw an increase in production, driven by the semiconductor industry, in March, while consumption and investment decreased at the same time.

The country added 194,000 jobs in Apirl compared to a year earlier, but saw a sharp drop in quality jobs in the manufacturing and construction sectors.

Consumer prices increased 2.1 percent on year last month due to an increase in the prices of agro-fisheries products.

"The government will swiftly implement a 13.8 trillion won ($9.9 billion) extra budget to support export companies and boost the industrial competitiveness, and also help efforts to restore the domestic economy," the ministry said.

Yonhap