Tuesday, July 08, 2025 ਪੰਜਾਬੀ हिंदी

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South Korean economy in doldrums amid weak domestic demand, US tariff uncertainty

Seoul, July 8 || The South Korean economy remains subdued amid weak domestic demand and worsening external uncertainties stemming from the United States' aggressive tariff policy, among other factors, a state-run think tank said on Tuesday.

"The Korean economy remains at a similarly subdued level as in the previous month. Construction remains depressed, while manufacturing is experiencing a downturn, dampening production growth," the Korea Development Institute (KDI) said in a monthly economic assessment report.

Despite strong chip sales in the global market, the overall exports to the U.S. weakened, particularly in such sectors as vehicles affected by the U.S.' aggressive tariff policy, resulting in slower growth in manufacturing production, the think tank said, reports news agency.

"While consumer sentiment is on the mend, pointing to a possible improvement in domestic demand conditions, trade-related uncertainty remains elevated with the expiry of the U.S.' mutual tariff suspension approaching," the KDI added.

In June, South Korea's exports rose 4.3 percent from a year earlier to $59.8 billion thanks to strong global demand for semiconductors.

 

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