The South Korean government said sluggish exports and weaker construction investment continue to weigh on the domestic economy, despite recent gains in service output and consumption.

In its monthly assessment report on Friday, the Finance Ministry said exports and construction investment are still in correction territory, while service output and consumption recorded a modest rise.

The report said investments in equipment and facilities are gradually breaking out of a slump.

Market sentiment also improved amid eased concerns over the U.S.-China trade row and signs of recovery in the global semiconductor industry.

Projecting that South Korea will hit its 2019 growth target of two percent, a ministry official said the local economy is expected to bounce back this year, so long as there are no external risks.