Monthly Economic Trends in South Korea, June 2022
![Monthly Economic Trends in South Korea, June 2022](/content/images/size/w1200/2022/06/kroea-cpi.gif)
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Korea’s economic recovery is losing steam over global supply chain disruptions and surging raw material prices, notwithstanding the recent upturn in the service industry.
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With the lifting of social distancing restrictions, the service industry shows signs of recovery led by face-to-face services.
╺ Production made a relatively strong rebound in service businesses, such as accommodation and food services and arts, sports, and recreation-related activities.
╺In addition, employment conditions showed a solid improvement as the number of employed persons continued to increase in the service and manufacturing industries.
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However, the manufacturing industry is decelerating on the back of prolonged supply chain disruptions and persistently high raw material prices, bringing down the pace of economic recovery.
╺Export growth is gradually slowing down, reflecting weaker global growth and the adverse impacts of China’s Zero-COVID policy.
╺In April, production in most key manufacturing segments saw a fall from the previous month, with stagnant equipment investment and limited recovery in durable goods sales.
╺High inflation caused by rising raw material prices is hurting the purchasing power of households and firms and pushing up interest rates locally and globally, posing a downside risk to economic activity.