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S. Korean Gov't Worries About Weak Private Consumption Despite Recovery Signs
 

The South Korean government on Friday expressed worry about weak private consumption despite signs of recovery.

The Ministry of Strategy and Finance said in its monthly economic assessment report that the continued signs of economic recovery came out of the export growth and improved sentiment.

The report worried about the faltering consumption given that labor market conditions were still lackluster with a high unemployment rate, especially among youths, and that household income was sagging.

It also cited the expected interest rate hike in the United States as one of negative external factors.

Exports, which account for about half of the economy, jumped 13.4 percent in May from a year earlier, keeping a growth momentum for the seventh consecutive month.

Production in the mining and manufacturing industries reduced 2.2 percent in April, but the services industry saw an increase in production for six months through April.

Retail sales gained 0.7 percent in April from the previous month, but auto sales in the domestic market tumbled 9 percent in May. Revenue in department stores slumped 2.8 percent last month.

The overall jobless rate was 4.2 percent in April, while the unemployment rate among those aged 15-29 surged to 11.2 percent in the same month.


(www.chinaview.cn 2017-06-12)
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