NABO Economic Trends (No. 28)

Published on April 27, 2022
Published by Economic Analysis Department

∎ Economic Trends
 Korea's economy is maintaining favorable growth in exports, but uncertainties continue due to the Ukraine conflict and concerns about possible acceleration of tightening measures by the US Fed, etc. Although exports in March recorded 63.48 billion dollars, which is an increase for 17 consecutive months, the trade balance turned into a deficit as imports also rose due to a surge in raw material prices and increased imports of intermediate goods in relation to the Ukraine crisis, etc. On the other hand, as the spread of COVID-19 has peaked and quarantine measures have eased, the Composite Consumer Sentiment Index (CCSI) rose MoM inMarch, and manufacturing and service industry production increased YoY in February. In March, employment recovery continued to maintain a positive level, with the total number of employed persons increasing by 831,000 YoY. In the domestic financial market, the treasury bond yields rose due to a bounce in the US treasury bond yields, etc., and the won/dollar exchange rate also hiked MoM due to a heightened preference for safe assets. In March, consumer prices jumped 4.1% YoY due to further increase in prices of industrial products and personal services, and during the same month, while the volatility rate of the nationwide home sales price index decreased MoM, that of the jeonse/monthly rent price index remained at the same level as the previous month.