South Korea finance ministry says weak domestic recovery holding back economic growth

[SEOUL] South Korea's finance ministry on Friday said weak private consumption and tepid jobs growth are holding back economic expansion even as exports continue to post robust gains.

August retail sales declined 1 per cent from July as South Korean consumers became less optimistic about the economy, the finance ministry said in its monthly assessment of the economy.

The Bank of Korea's composite consumer sentiment index for August declined to a three month low of 109.9, down from July when it hit a six-and-a-half-year high of 111.2.

The economy faces uncertainties from geopolitical risks stemming from North Korea and worsening trade environment, the ministry said without providing further details.

REUTERS