S. KOREA REPORTS SLOW RECOVERY IN SERVICE SECTOR DUE TO NEW COVID-19 CASES

Highlights –

• S. Korea reports slow recovery in service sector due to new COVID-19 cases.
• S. Korea’s manufacturing sector rather showed increase in exports.
• In December S. Korea’s exports rose to 12.6 percent on-year.
• Credit card sales from December are expected to drop due to Level 2.5 social distancing measures.

Korea Development Institute (KDI), which is a state-run think tank in the country reported that the economic recovery momentum is slowing down as the service sector has remained sluggish amid a resurgence in new coronavirus cases.

According to a monthly economic assessment report by the Korea Development Institute (KDI), the country’s manufacturing sector sustained a recovery mainly due to increase in exports. However, the service industry reported to have suffered sluggishness due to a flare-up in COVID-19.

According to the statistics agency, the country’s industrial output and facility investment rose in November from a month earlier as production of chips and display panels increased, propelling exports.

Data suggested that the country’s exports rose 12.6 percent on-year in December on the back of strong shipments of chips.

However, the country’s retail sales declined in November from a month ago, in a sign that economic recovery still remains weak amid the pandemic.

According to South Korea’s health authorities, new coronavirus cases in the country were above 1,000 for a considerable time in December as cluster infections popped up across the nation.