The Ministry of Economy and Finance has assessed that the nation is in the midst of a gradual easing in the economic downturn thanks to signs of improvement in production and semiconductor exports.

In its monthly economic assessment report, the “Green Book,” released on Friday, the ministry production and exports in the manufacturing sector, led by the chip industry, has gained momentum along with improvements in the service sector and job market.

Exports of semiconductors extended its losing streak to 14 straight months, but September’s figures showed the year’s highest monthly outbound shipment value of nine-point-nine billion U.S. dollars.

However, the ministry warned of prolonged uncertainties due to the war in Ukraine as well as the recent armed conflict between Israel and Hamas, while also noting higher oil prices and the U.S. Federal Reserve’s aggressive monetary tightening.

In regards to inflation, the ministry said South Korea has seen a gradual downtrend, although consumer prices reported the highest on-year rise in five months of three-point-seven percent in five months in September.