South Korea's economy remained sluggish despite stimulus measures such as the extra budget plan and policy rate cut, a government report showed Tuesday.
"Some economic indicators showed growth amid stable consumer prices, but industrial production, consumption and construction investment reduced, with employment slowing down," the Ministry of Strategy and Finance said in Green Book, the monthly report assessing economic conditions.
Output in the service sector increased 0.2 percent in May from a month earlier, but production in the mining and manufacturing industries fell 0.4 percent. Retail sales declined 0.2 percent over the same period, and construction investment sank 4.3 percent.
Consumer prices rose 1 percent in June from a year earlier, staying at the lowest level in 14 years for two straight months.
Exports, which account for around half of the economy, dipped 0. 9 percent in June from a year earlier amid weak demand from Japan, whose currency fell against the U.S. dollar and the South Korean won amid the aggressive monetary easing.
Downbeat economic data came despite stimulus measures such as the supplementary budget plan of 17.3 trillion won (15 billion U.S. dollars) unveiled in April and the central bank's policy rate cut by 25 basis points in May.
The ministry said there remained downside risks to the economy such as risks over the U.S. quantitative easing and delayed recovery in Europe, noting that it will continue its policy response to stimulate the economy.
