In the first half of this year, the domestic real economy continued to grow as exports and consumption rose alongside the recovery of domestic and foreign demand. However, growth is slowing due to the re-emergence of COVID-19 in the beginning of the year, rising global geopolitical  instability, runaway inflation, and tightened monetary policy. Domestic demand grew in the four percent range, reflecting a solid increase in private consumption, but facility investment declined significantly this year and construction investment declined at an even faster rate. Exports have maintained a double-digit growth rate with price hikes, but this growth too is slowing, owing to the base effect from last year, the prolonged Russia-Ukraine war, and the strengthening of China’s lockdown measures. In 2022, the domestic economy will continue to grow, mainly driven by consumption as the impacts of COVID-19 subside. A growth rate of 2.6 percent is expected as uncertainties remain.
Growth in the 13 major industries in the second half of 2022 is expected to slow due to increased internal and external uncertainties(soaring raw material prices, supply chain instability, inflation, and interest rate hikes). Exports of the 13 major industries in the second half of 2022 should continue to increase due to rising unit prices, with a growth rate of just 6.3 percent expected owing to external environmental uncertainties including a global economic slowdown, the war in Ukraine, and supply chain instability. Production in the 13 major industries in the second half of the year is expected to show a modest growth in most industries except for shipbuilding (a lack of orders), appliances(expansion of overseas production), petrochemicals (lower utilization rate), and biohealth(slow demand).