A leading index that shows how South Korea’s economy will fare over the next half year fell for the fifth straight month in December.
The Organization for Economic Co-operation and Development said on Thursday that the composite leading indicator, or CLI, for South Korea’s economy stood at 101.2 for December, down zero nine on the month.
However, the December figure was still above the 100 benchmark, indicating that the economy is still expanding.
The CIA assesses how an economy is doing over the next six months, based on industrial production, GDP and financial market conditions.
And the wake-up call comes as South Korea braces for uncertainties that are likely to linger throughout 2022.
Highlighting internal and external uncertainties, Finance Minister Hong Nam-ki called for policy goals that could cope with the current complex situation.
“South Korea must create a harmonious balance between virus prevention measures, economic recovery, people’s livelihoods, rising interest rates and exports. And this must be done taking into account the virus situation, the continued uncertainties and the financial situation”.
This includes efforts to support the country’s exports, a major pillar of South Korea’s economy, by addressing shipping costs and supply issues.
The Minister pledged to provide at least 8 ships in January to ease the logistics crisis.
The government also plans to continue to monitor the supply situation of the 200 key materials and prevent any problems by providing financial support and finding other import routes.
Kim Sung-min, Arirang News.