Economic Outlook (August 2023)

The Korean economy saw a moderation of weakness in the second quarter, driven by improvements in exports and manufacturing. It is expected to gradually improve with a rebound in the IT industry and an influx of Chinese tourists, although China's economic growth has weakened recently.

However, there remains a high degree of uncertainty concerning the growth path related to how the major economies and international energy prices will evolve.

Consumer price inflation recently slowed to the 2% range, but will pick up again and fluctuate at around the 3% level until the end of the year, while core inflation is likely to gradually moderate along a path slightly higher than the previous projection.

In sum, Korea's growth and inflation have evolved broadly in line with the path of the May forecast, but uncertainty has increased significantly in the second half of the year.

※ Refer to the attached file for details.