Seoul: South Korea’s government reported signs of improved production and consumption despite ongoing concerns about an export slump linked to U.S. tariffs.

According to Namibia Press Agency, the Ministry of Economy and Finance highlighted in its monthly Green Book report that key economic indicators for production and consumption are exhibiting a trend of improvement, aiming to emerge from the downturn experienced in the first half of the year, despite monthly fluctuations.

The report noted ongoing challenges such as delayed recovery in construction investment, employment issues for vulnerable groups, and concerns over export declines due to U.S. tariffs. The global economic situation remains volatile, with concerns over financial market fluctuations and sluggish trade growth in a deteriorating trade environment. The ministry emphasized the importance of boosting consumer demand and supporting local companies affected by U.S. tariffs.

In an effort to stimulate private consumption, the government implemented a supplementary budget plan in July, which included cash handouts to all citizens. Despite a 6.1 percent drop in construction production in August, the mining and manufacturing sectors saw a 2.4 percent increase in output. However, retail sales and facility investment decreased by 2.4 percent and 1.1 percent, respectively, during the same period.

September exports rose by 12.6 percent year-on-year, attributed to an increase in working days, although the daily average export rate fell by 6.1 percent. Consumer sentiment towards the economic situation declined in September for the first time in six months, yet maintained a relatively high level of 110.1. Employment figures showed an increase of 312,000 jobs in September compared to the previous year, while the unemployment rate remained steady at 2.1 percent. Consumer prices in September rose by 2.1 percent year-on-year, surpassing the 1.7 percent increase in the previous month.