"The economy continues to show its improvement trend with growth and employment making a fast rebound," the ministry said in a report to the National Assembly.
"But there are lingering anxieties that the European debt woes could spill over into the world, and other countries' shifts in their economic policy directions could come as downside risks," it added.
The report noted that consumer prices remain stable here, but inflationary pressure might be building up down the road on increasing demand and rising raw materials costs amid an economic recovery.
The remarks on inflationary pressure might signal a change in the government's stance on when to seek full-fledged exit strategies. The report came before the ministry is to announce its second-half economy management plan on Thursday.
The ministry has said that it will maintain its expansionary macroeconomic policy "for the time being," apparently opposing an immediate rate increase for fear that it could dampen a recovery.
"We will push to normalize our macroeconomic policy direction by reflecting all economic conditions at home and abroad in prudent and balanced ways," the report said.//Yonhap
reporter
Park Sae-jin
swatchsjp@ajunews.com