Sunday, April 9, 2023 – 9:38 am
SEOUL, April 9 / WAM / A government research center in South Korea revealed today that the country’s economy is still sluggish due to weak exports, but the financial market is still relatively stable despite the global uncertainty.
The Korea Development Institute (KDI), in its monthly report, said that South Korea’s economic stagnation, which is led by manufacturing, continues with shrinking exports due to the global slowdown. This assessment came after South Korea’s exports fell for the sixth consecutive month in March due to weak global demand for semiconductors, as the country has been running a trade deficit for 13 months in a row, according to Yonhap News Agency.
The institute added, in its report, that as a result, the manufacturing industry is witnessing high levels of inventory and low rates of capacity utilization, as production is witnessing a significant decline. To establish “relative stability” in the financial market.
He explained that the collapse of Silicon Valley Bank and Credit Suisse led to expectations of a slowdown in monetary policy tightening in major economies, which led to a decline in the three-year government bond yield and the exchange rate, and a rise in the Kospi index.
South Korea’s main index closed at 2,476.9 points on the last trading day of March, up 2.65% from the end of February.
“With the increasing demand for travel, the production of services – especially in face-to-face business – has witnessed more accelerated growth,” the institute said. , led by the accommodation and food sectors, as people’s increased outdoor activity picked up amid favorable weather conditions and the easing of COVID-19 restrictions.
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Mostafa Badr El Din