The government has expressed concerns that recovery in domestic demand may see constraints due to the spread of variants of COVID-19.

The finance ministry expressed the view in its monthly economic evaluation report called the “Green Book” which was released on Friday.

The report said the nation's economy is facing such concerns despite a continued rise in employment and brisk exports in February.

The number of people with jobs grew by over one million for the second consecutive month last month and the nation’s unemployment rate dropped one-and-a-half percentage points from a year ago to stand at three-point-four percent.

Exports last month surged nearly 21 percent on-year thanks to active shipments of semiconductors and petroleum products.

However, when looking at key indices gauging industrial activities, service sector output and retail sales slipped. Growth was seen, though, in manufacturing industries’ production and construction investment.

The consumer sentiment index for February also slipped one-point-three points from January to 103-point-one.

Also in the report, the government noted that concerns over disruptions in global supply chains and inflation worsened due to Russia’s invasion of Ukraine, which coincided with adjustments in monetary policies by key economies. The report said such concerns have aggravated uncertainties, fanning volatility in raw materials and financial markets.

The government vowed to minimize any ramifications the nation may face from such uncertainties by keeping a close eye on risks both at home and abroad. It also pledged to put forth its best efforts to respond to the spread of COVID-19 variants and to boost economic recovery by swiftly executing the supplementary budget.