(MENAFN) South Korea's economy is recovering slowly on increased domestic spending, but it is facing rigid challenges from falling exports and the outbreak of MERS, Yonhap News reported.
In its latest report on Asia's fourth-largest economy, the finance ministry said low fuel prices and a surge in home transactions are contributing to a rise in consumption that has been weighing down growth.
However, the ministry said the weak Japanese yen, slowing global trade and MERS are all adding to downside risks for the economy. A weak Japanese yen the exports, which dropped 10.9 percent in May.
"Economic indicators, such as industrial output, and investments in facilities and in the construction sector have all declined, posing challenges to the economy," the ministry said.
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