S Korean economy faces growing downside risks

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SEOUL, Dec 4 (AFP): South Korea's export-driven economy faces growing downside risks as fears of a worldwide slowdown grow, the finance ministry said today.
"Despite easing inflationary pressures, South Korea faces increased downside risks such as contraction of production, domestic demand and exports," the ministry said in its monthly report analysing economic trends.
"As the fallout from the global financial instability is spilling over into the real parts of the economy worldwide, the nation's exports are shrinking sharply, among other things, with the overall contraction picking up pace." Exports dropped more than 18 per cent year-on-year in November, the largest fall in percentage terms since December 2001.