The government has assessed that the domestic economic downturn is letting up amid signs of recovery in the manufacturing sector and an improvement in exports.

In a monthly assessment report on Friday, the finance ministry said that despite monthly volatilities, the economic slowdown is partially easing on the back of recovering export volumes, including semiconductors, and improving economic sentiment and employment.

The latest assessment comes as production in the manufacturing sector returned to surplus in the April-to-June period for the first time in five quarters while the nation posted a trade surplus of one-point-63 billion U.S. dollars to continue a two-month streak in the black.

Inflation fell to a 25-month low of two-point-three percent on-year in July, reflecting lower oil prices.

However, the ministry assessed uncertainties in the global economy will continue, citing monetary tightening, the protracted war in Ukraine, and raw material price volatilities.

Domestically, the ministry called for prompt measures to reinforce price stability in the wake of the recent heat wave and heavy rains.