The South Korean economy has been showing a moderate recovery from a lackluster growth in the fourth quarter of last year, the finance ministry's monthly report said Tuesday. "Employment growth was more or less sluggish and consumer price inflation stayed at a low level on cheaper oil. But, overall economy showed moderate recovery though economic indicators, including production, consumption and construction investment, fluctuated," the Finance Ministry said in its monthly economic report called the "Green Book". The country's real gross domestic product (GDP) increased 0.8 percent in the first quarter after rising 0.3 percent in the fourth quarter of 2014. Reflecting the downbeat fourth-quarter growth, the Bank of Korea (BOK) revised down its 2015 growth outlook to 3.1 percent in March from 3.4 percent estimated three months earlier. It was far lower than the finance ministry's growth forecast for 2015 at 3.8 percent. The ministry said that positive signs emerged due to low oil prices and higher housing prices, which would lead to improved sentiment among consumers and companies despite negative factors such as the weak Japanese yen trend and delayed global economic recovery. Retail sales in March reduced 0.6 percent from the prior month, but private consumption rose 0.6 percent in the first quarter from three months earlier. The April retail sales were expected to rebound due to strong demand for cars and vehicle fuels. Domestic car sales climbed 2.8 percent in April from a year earlier, with sales of gasoline and diesel expanding 8.7 percent in the month. Sales at department stores grew 1.5 percent last month, and credit card usage jumped 15.3 percent in April. Facility investment was little changed in the first quarter on a quarterly basis, but construction investment jumped 7.5 percent. Housing prices inched up 0.4 percent in April from a month earlier, indicating a housing market recovery caused by low interest rates and eased regulations on mortgage financing.
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