The government reaffirmed its view that the economy is recovering, driven by improved domestic demand and exports.

The Ministry of Economy and Finance presented the assessment in the December issue of its monthly economic report, the Green Book, released on Friday.

The ministry said the economy is showing signs of recovery with stronger domestic consumption and solid export performance centered on semiconductors, shaking off the sluggishness of the first half of the year.

The ministry had determined last month that the economy was on a path to recovery.

However, it noted that major indicators such as production and consumption have shown significant month-to-month fluctuations due to October's extended holidays and that employment difficulties persist in vulnerable sectors.

The ministry added that the pace of recovery in construction investment and the potential impact of U.S. tariff measures remain uncertain.