The economic recovery of South Korea was restricted by the sluggish domestic demand despite the positive exports, as mentioned by an economic think tank on Tuesday. In a monthly report from the Korea Development Institute (KDI), exports sustained its optimistic growth on demand for locally produced semiconductors. However, the KDI mentioned that domestic demand slightly softened alongside the lagging recovery in consumer expenditure and fluctuation in corporate investment. While the production recovery was affected by the trend and cooled down aside for several sectors such as the chip industry. Moreover, S. Korea’s retail sales grew by 4 percent in June but below than 4.5 percent expansion in July. While consumer sentiment index versus the economic status contracted to 101.0 in July from 105.5 in the previous month.
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