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Economic Bulletin (Vol. 32 No.5)

Economic Bulletin (Vol. 32 No.5)

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The Green Book: Current Economic Trends
1. Global economy
2. Private consumption
3. Facility investment
4. Construction investment
5. Exports and imports
6. Mining and manufacturing production
7. Service sector activity
8. Employment
9. Financial markets
9.1 Stock market
9.2 Exchange rate
9.3 Bond market
9.4 Money supply & money market
10. Balance of payments
11. Prices and international commodity prices
11.1 Prices
11.2 International oil and commodity prices
12. Real estate market
12.1 Housing market
12.2 Land market
13. Composite indices of business cycle indicators

Policy Issues
The 2011 guidelines on budgeting

Economic News Briefing
The Green Book: Current Economic Trends
1. Global economy
2. Private consumption
3. Facility investment
4. Construction investment
5. Exports and imports
6. Mining and manufacturing production
7. Service sector activity
8. Employment
9. Financial markets
9.1 Stock market
9.2 Exchange rate
9.3 Bond market
9.4 Money supply & money market
10. Balance of payments
11. Prices and international commodity prices
11.1 Prices
11.2 International oil and commodity prices
12. Real estate market
12.1 Housing market
12.2 Land market
13. Composite indices of business cycle indicators

Policy Issues
The 2011 guidelines on budgeting

Economic News Briefing

More info:

Published by: Republic of Korea (Korea.net) on May 20, 2010
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10/26/2011

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The cyclical indicator of coincident composite index increased 0.5 points month-on-month in

March, continuing the upward trend.

Two components of the index, i.e. the wholesale & retail sales index and the domestic

shipment index decreased. In the mean time, the other six components such as the volume

of imports, the mining & manufacturing production index, and the manufacturing operation

ratio index were up.

The year-on-year leading composite index went down 0.7 percentage points from the

previous month, continuing the downward trend for three consecutive months.

Five components of the index including the volume of capital goods imports and the ratio of

job openings to job seekers increased, while the other five components such as the indicator

of inventory cycle, the value of construction orders, and the consumer expectations index

were down.

Components of coincident composite index in Mar(m-o-m)

Value of construction completed (0.6%), mining & manufacturing production index (1.7%), volume of imports

(2.3%), manufacturing operation ratio index (1.1%), service activity index (0.6%), number of non-farm payroll

employment (0.3%), wholesale & retail sales index (-0.4%), domestic shipment index (-0.1%)

Components of the leading composite index in Mar(m-o-m)

Indicator of inventory cycle (-7.3%p), consumer expectations index (-2.0p), value of construction orders

received (-8.2%), net terms of trade index (-0.6%), spreads between long & short term interest rates (-

0.1%p), ratio of job openings to job seekers (6.8%p), value of machinery orders received (4.7%), volume of

capital goods imports (4.4%), composite stock price index (1.0%), liquidity in the financial institutions (0.5%)

Coincident composite index (m-o-m, %)

Cyclical indicator of coincident composite index

(m-o-m, p)

Leading composite index (m-o-m, %)

12 month smoothed change
in leading composite index (%)

(m-o-m, %p)

1. Preliminary

2009

2010

1. Preliminary

Sep

0.7

98.9

0.2

0.6

9.6

0.8

Oct

0.4

98.9

0.0

0.6

10.3

0.7

Nov

0.5

99.0

0.1

1.1

11.3

1.0

Dec1

0.4

98.9

-0.1

0.7

11.6

0.3

Jan1

0.8

99.3

0.4

0.3

11.3

-0.3

Feb1

1.2

100.0

0.7

-0.2

10.3

-1.0

Mar1

0.8

100.5

0.5

0.1

9.6

-0.7

Economic Bulletin 41

Coincident and leading composite indices

Source: Statistics Korea

13-1

13-2

13-3

Cyclical indicator of coincident composite index

Source: Statistics Korea

Leading composite index

Source: Statistics Korea

42May 2010

The 2011 budget guidelines are directed toward an early recovery of fiscal health and post

crisis economic take-off.

Overview

To early improve the fiscal condition that has deteriorated amid the economic crisis, the total

expenditure of 2011 will be more tightly controlled than in 2010, when a budget deficit of 2.7

percent to GDP was registered. The 2011 budget, without compromising the quality of public

service, will be strictly managed: discretionary budgets to be reviewed across the board,

compulsory budgets to be reduced, and fiscal project budgets to be more systematically

controlled from planning to allocating, to spending, and to appraisal.

To found a basis for the Korean economy to make a great leap forward in the post crisis

period, budget allocation will give priorities to job creation and working class support, future

growth engines, and diplomatic affairs.

Guidelines on fiscal management

The 2011 fiscal management guidelines are aimed at 1) achieving solid recovery of fiscal

health, 2) effectively managing budgets, and 3) expanding revenue bases.

1) To achieve solid recovery of fiscal health,

- national finance to be managed in terms of a total balance, rather than separate ones such

as a fiscal balance or national debt

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