Economic Bulletin, March 2025
Current Economic Trends
Overview
In January, industrial production, services production, facilities investment, construction investment, and retail sales decreased. In February, the economy experienced an increase in the number of jobs and consumer prices continued to moderate.
In January, total production (down 2.7% m-o-m and down 3.5% y-o-y) fell, as industrial production (down 2.3% m-o-m and down 4.1% y-o-y), services production (down 0.8% m-o-m and down 0.9% y-o-y), construction (down 4.3% m-o-m and down 27.3% y-o-y) decreased.
In January, retail sales (down 0.6% m-o-m and 0.0% y-o-y), facilities investment (down 14.2% m-o-m and down 3.1% y-o-y), and construction investment (down 4.3% m-o-m and down 27.3% y-o-y) decreased.
In February, exports rose 1.0 percent from a year ago due to the increased working days. Average daily exports declined 5.9 percent compared to the previous year.
In February, the Consumer Sentiment Index (CSI) increased by 4.0 points month-on-month to 95.2. The Composite Business Sentiment Index (CBSI) decreased by 0.6 points to 85.3 in February, while the CBSI outlook for March rose by 2.6 points to 88.0.
In January, the cyclical indicator of the coincident composite index and the cyclical indicator of the leading composite index decreased by 0.4 points and 0.3 points, respectively.
In February, employment grew by 136,000 jobs compared to the previous year and the unemployment rate remained unchanged at 3.2 percent from a year ago.
In February, the Consumer Price Index (CPI) grew by 2.0 percent year-on-year. The index when excluding food and energy prices increased by 1.8 percent.
In February, Korean equity prices rose, yields for Korean Treasury Bond fell, and the Korean Won weakened against the dollar.
In February, housing prices fell (down 0.06% m-o-m) and Jeonse (lump-sum deposits with no monthly payments) prices also declined (down 0.01% m-o-m).
Recently, the Korean economy has faced delayed recovery in domestic demand, such as consumption and construction investment, along with sustained challenges in employment particularly in vulnerable sectors. Moreover, export growth has slowed and economic sentiment has weakened due to escalating domestic and external uncertainties, leading to heightened downward pressure on the economy.
The global economy continues to face geopolitical risks, while trade uncertainties are increasing owing to the implementation of tariff measures by major countries.
The government will promptly push forward key initiatives from the “People’s Livelihoods Improvement Plan Q1, 2025”, including measures related to employment, construction, small businesses and financial support for low-income households, while continuously seeking additional support measures. At the same time, concerted efforts will be made to respond to trade uncertainty and provide full support for exports, including enhancing assistance for businesses potentially affected by U.S. tariff impositions and establishing the High-Tech Strategic Industry Fund.
* For full text, please open the attached PDF file.
