SEOUL, April 17 (Xinhua) -- The South Korean government saw increased downside risks to the economy amid the escalating Middle East tensions, a finance ministry report said Friday.
The Ministry of Economy and Finance said in its monthly report, called Green Book, that the Asian economy recently faced intensified downward risks due to heightened geopolitical risks stemming from the Middle East conflict.
Despite robust exports, led by semiconductors, and recovery in domestic demand, the Middle East tensions weighed on consumer and business sentiments, while surging oil prices fueled concerns over inflation and the cost of living, the ministry said.
Regarding the global economy, the ministry said that concerns lingered over heightened volatility in global financial markets and energy prices as well as a slowdown in trade and growth, affected by the Middle East conflict and worsening trade conditions such as tariff imposition by major economies.
The country's export soared in double digits to hit an all-time high in March thanks to surging chip demand, while both the consumer and business sentiment indices deteriorated in March compared to the previous month.
Facility investment expanded in double figures in February from a month earlier, while retail sales stood unchanged in the cited month.
Consumer prices gained 2.2 percent in March on a yearly basis, faster than an increase of 2.0 percent in the previous month.
The number of jobs grew by 206,000 in March from a year earlier after rising 234,000 in the prior month. ■
