The Korea Development Institute(KDI) says despite sluggish investment and a labor market slump, South Korea’s economy is not at risk of a rapid downturn.
In a report released Tuesday, the state-run think tank said South Korea’s labor market is seeing a slump with growth in domestic demand weakening amid tepid investment.
The report, however, was quick to add that exports are maintaining growth.
The institute forecast that facility investment, which slipped ten-point-four percent in July, will remain sluggish.
The report also said the number of people with jobs in July grew by only some five-thousand, far smaller than the 106-thousand posted in June.
However, it said that exports surged eight-point-seven percent in August, higher than the six-point-two percent growth posted in July.