Recovery Signals
Both employment and the real estate market - two critical indicators of the domestic economy - are showing signs of recovery, sparking hope that the economy is headed toward an upturn.
The Fed recently evaluated that Korea’s economy is particularly stable among emerging economies, fueling interest as to whether or not the country’s economy will head toward recovery.
According to Statistics Korea and real estate sources on February 12, sales of large homes, which generally refers to apartments 96 m2 and up, have increased for the first time in three years. Also, the sales volume and prices of apartments have made gains, signaling signs of a housing market recovery.
With the housing market on the rebound, employment has improved as well. The number of employed increased by 705,000 in Jan. compared to the same month last year. It was the highest gain in 11 years and 10 months, to which the service industry such as construction, wholesale & retail sector, and food & lodging contributed.
The number of employed started increasing since May of 2013 when it hit 265,000. In particular, the number increased to 588,000 in November and 560,000 in December last year, respectively, topping the 500,000 mark for two consecutive months. In January this year, the number increased by 207,000 from the previous month.
Experts generally agree that the domestic economy is heading toward an upturn, but also warn against optimism, as there are other factors remaining that may halt the positive momentum such as US tapering.