SEOUL, Nov. 2 (UPI) -- South Korean President Moon Jae-in painted an optimistic picture of the country's economic prospects on Monday, saying it's "recovering rapidly" from the fallout of the COVID-19 pandemic and projecting a return to normal growth in the first half of next year.
The South Korean economy grew 1.9% in the third quarter, marking the fastest economic expansion since 2010. The country fell into a recession over the first half of 2020, with the economy shrinking by 3.3% in the second quarter and 1.4% in the first.
During remarks to senior aides at the Blue House, Moon pointed to a "triple increase" in industrial activities in the final month of the third quarter, with production, consumption and investment rising on-month by 2.3%.
"If the trend of economic rebound continues in the fourth quarter, our economy will be able to recover from the impact of the coronavirus in the first half of next year and enter its normal trajectory," he said.
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South Korea's economic recovery has been powered by exports, which showed year-on-year growth in September for the first time since the pandemic hit.
October's average daily exports rebounded to a positive for the first time since January and recorded the highest performance in 13 months, Moon noted.
"This is a very valuable achievement amid shrinking international trade, and it is an achievement that boosts confidence that our economy can rebound early," he said.
South Korean consumers are feeling optimistic as well, with consumer sentiment soaring on stronger than expected economic growth and a government pandemic response that has been widely praised.
Consumer confidence rose by double digits in October, the Bank of Korea announced last week, rising by 12.2 points to reach 91.6. The figure marked the largest increase since 2009.
Moon cautioned against too much exuberance, however, noting that countries such as France and Germany have reimposed lockdowns due to a second coronavirus wave in Europe.
"Uncertainty in the global economy is high, so we are still not safe," he said.
South Korea has been trying to bolster domestic spending with efforts such as a nationwide sales festival in November. The event, which began Sunday, features sales and promotions by some 1,600 companies.
While South Korea has managed to contain the spread of COVID-19 to a much greater extent than most countries in Europe and North America, Moon said cluster outbreaks at home still threaten to put a damper on domestic consumption.
"We cannot be relieved, as small-scale group infections of the coronavirus continue to occur," he said.
South Korea reported about 100 new COVID-19 cases on Monday, about the normal daily average since health authorities loosened distancing measures on Oct. 12.
Over the weekend, the government said it would expand distancing guidelines from three tiers to a five-tier system to offer more detailed and regionally tailored measures.
"Together with the people, the government will create a model country for pandemic prevention, followed by a model economy," Moon said.
