The government assessed that a robust economic recovery is continuing, supported by increased exports, investment, and improved consumption. However, it noted that rising prices due to high oil costs and challenging employment conditions for vulnerable groups are continuing to burden households amid growing uncertainties from the Middle East conflict.
The Ministry of Economy and Finance stated in its 'Recent Economic Trends for October 2026' report released on the 16th, "Exports have increased significantly, investment is showing a healthy growth trend, and consumption is gradually improving, indicating a solid economic recovery."
Exports have been a key driver of this recovery. In September, exports reached $120.94 billion, marking an 83.5% increase compared to the same month last year. Exports of semiconductors, computers, and cosmetics expanded significantly. The average daily export amount, adjusted for working days, was $5.63 billion, up 104.9%.
However, economic indicators for August showed a decline compared to the previous month. Overall industrial production decreased by 1.3%, despite a 0.5% increase in service production and a 1.9% increase in construction production, while mining and manufacturing output fell by 4.8%. Compared to the same month last year, total industrial production increased by 1.9%.
Retail sales, a measure of consumption, fell by 1.8% from the previous month. While sales of semi-durable goods increased, sales of durable and non-durable goods declined. Facility investment also decreased by 9.5% compared to the previous month, although it rose by 16.1% year-on-year.
Consumer and business sentiment showed mixed signals. The consumer sentiment index for September rose by 2.1 points to 106.6, while the business sentiment index for all industries fell by 0.5 points to 99.1. The outlook for business sentiment in October remained unchanged at 99.6.
The coincident composite index, which reflects the current economic situation, increased by 0.5 points in August compared to the previous month. However, the leading composite index, which predicts future economic trends, fell by 0.1 points.
While the pace of price increases has somewhat slowed, the burden of high oil prices remains. In September, consumer prices rose by 2.9% compared to the same month last year, a decrease from the 3.1% increase in August. Prices for agricultural, livestock, and fishery products fell by 0.3%, while prices for oil and personal services continued to rise.
Notably, the increase in oil prices expanded from 14.2% in August to 14.8% in September due to base effects. International oil prices also rose amid ongoing uncertainties in the Middle East due to military actions. Core inflation, excluding food and energy, rose by 2.8%, while living costs increased by 2.5%.
Employment growth has slowed, with the number of employed persons increasing by 113,000 in September compared to the same month last year, down from an increase of 184,000 in August. The employment rate for those aged 15 and older fell by 0.2 percentage points to 63.5%. The unemployment rate decreased by 0.1 percentage points to 2.0%.
The Ministry of Economy and Finance noted that while the global economy continues to grow at a moderate pace, uncertainties remain due to the Middle East conflict and U.S. tariff measures.
The government plans to strengthen supply management of key items to minimize the impact of the Middle East conflict. It also intends to enhance policy efforts to stabilize livelihoods and reduce polarization, ensuring that the benefits of growth are widely shared across the economy.
* This article has been translated by AI.
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