South Korea saw its facility investment
continue to decline as local firms were reluctant to spend capital
amid lingering uncertainties such as the U.S. fiscal cliff and the
eurozone fiscal crisis, a state-run think tank said Sunday.
"Our economy was recently improved due to modest recovery in exports and consumption, but facility investment continued to show underperformance," the Korea Development Institute (KDI) said in its monthly report on economic conditions.
The global economy showed signs of improvement as seen in some economic indicators in the United States and China, but uncertainties lasted due to the U.S. fiscal cliff issue and the eurozone fiscal crisis.
Output in the manufacturing and mining sectors maintained its growth trend in October with a 0.6 percent on-month expansion, but the service industry production declined 1 percent over the same period.
Retail sales increased 2 percent in October, keeping their recent upward trend, but facility investment continued its downward trend as local companies delayed their capital spending amid lingering uncertainties surrounding the global economic recovery.
Meanwhile, exports showed a modest recovery in November, indicating that the country's economy may bottom in the third quarter. Exports increased 3.9 percent last month, up from a 1.1 percent gain in the prior month.
South Korea's third-quarter GDP growth was revised down to 0.1 percent from a preliminary estimate of 0.2 percent. The figure was the lowest since the first quarter of 209 when the global financial crisis peaked.
The downward revision came amid mounting concerns over the global economic slowdown. The Organization of Economic Cooperation and Development (OECD) lowered its 2013 global growth outlook to 3. 4 percent from an earlier estimate of 4.2 percent.
The KDI cut its 2013 growth outlook for South Korea to 3 percent from an earlier forecast of 3.4 percent made in September.
(c) 2012 Xinhua News Agency - CEIS. Provided by ProQuest LLC. All rights Reserved.
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