SEOUL, March 20 (Xinhua) -- The South Korean government saw downside risks to the Asian economy amid escalating Middle East tensions, a finance ministry report said Friday.
The Ministry of Economy and Finance said in its monthly report, called Green Book, that the South Korean economy recently showed a continuing trend of economic recovery on the back of the enhanced domestic demand, including consumer spending, and robust exports centered on semiconductors.
The ministry, however, noted that the expanding geopolitical risks in the Middle East drove up oil prices that led to worries about inflation, greater financial strain on ordinary people and increased downside risks to the economy.
It said that uncertainties remained about employment difficulties among vulnerable groups, the pace of construction investment recovery and the effect of the U.S. tariffs imposition.
Regarding the global economy, concerns emerged about heightened volatility in global financial markets and energy prices as well as a slump in trade and growth, caused by the Middle East situation and the worsening trade conditions, including the imposition of tariffs by major economies.
Retail sales gained 2.3 percent in January from a month earlier, and facility investment expanded 6.8 percent.
The consumer sentiment index rose 1.3 points from a month earlier to 112.1 in February, hovering above the long-term average of 100 to indicate optimists outnumbered pessimists.
The daily average export jumped 28.7 percent in February from a year earlier due to solid semiconductor demand.
The number of jobs grew 234,000 in February from a year earlier, faster than an expansion of 108,000 in the previous month.
Consumer prices increased 2.0 percent in February on a yearly basis, equaling the central bank's mid-term inflation target of 2 percent. ■
