A state-run think tank said Thursday that the South Korean economy was continuing a modest rate of improvement on the back of relatively favorable figures in production, consumption and exports.

The Korea Development Institute(KDI) gave this assessment on the local economy in the March edition of its economic trends report.

The KDI said the output index of all industries posted four-and-a-half percent growth in January compared to minus growth the previous month. But it said economic recovery was still limited if temporary effects such as increased business days are ruled out.

The think tank said that spending grew just one-point-four percent affected by factors such as the Lunar New Year holiday, but its gradual increase was continuing.

Regarding exports, the report noted that outbound shipments rose four percent in February due to fewer business days, marking a sharp drop from 22 percent growth the month before.

But it said that daily average exports jumped 18-point-eight percent last month, much higher than eight-point-two percent in January.