S. Korean economy recovering: state-run think tank

SEOUL, Nov. 8 (Yonhap) -- South Korea's economy remains in the "recovery phase"
as exports, consumption and other indicators are rebounding fast, driven in part
by eased instability in overseas markets, a state-run think tank said Sunday.
"As the rising export trend continues in the Korean economy, private consumption
and investment improved substantially, maintaining the overall economy in the
recovery phase," the Korea Development Institute (KDI) said in its monthly
economy-assessment report.
The assessment is in line with the government's recent report that said the
Korean economy is making a "better-than-expected" recovery, though uncertainties
still remain at home and abroad.
Industrial output maintained its upward trend, while consumption improved in
recent months, indicating both companies and consumers are less worried about the
future economic outlook, according to the report.
Adding to the upbeat figures, businesses increased their investments in
equipment. Construction activities also picked up, with the value of construction
completed rising 6 percent in September, a turnaround from negative 6 percent in
the previous month, the report showed.
The labor market improved as well, easing concerns over protracted frozen
employment conditions.
The nation's seasonally adjusted unemployment rate stood at 3.6 percent in
September, down from the previous month's 3.4 percent. The number of employed
people increased by 71,000 compared to a year ago.
External market conditions are also rebounding as economic recessions in major
countries are steadily easing, according to the report.
"The U.S. economy is edging closer to recovery by registering a
quarter-on-quarter economic growth rate of 0.9 percent for the third quarter as
its housing economy stabilizes and its consumption improves despite continuing
low employment," the report said.
"Eurozone appears to be bottoming out from the severe recession with its
production and major sentiment indexes improving, despite signs of continued
uncertainty about the real economy in the future," it added.
The report, however, stopped short of mentioning when and how South Korea should
unwind expanded state spending, low interest rates and increased liquidity in the
market as debate is brewing over the timing of so-called exit strategies.
Finance Minister Yoon Jeung-hyun earlier said that the government will maintain
its macroeconomic policy stance until a sustainable economic recovery is assured.
The nation's central bank kept its key interest rate at a record low of 2 percent
in its latest rate-setting meeting.
kokobj@yna.co.kr
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