The finance ministry believes domestic demand has bottomed out and is now on the upswing.

The ministry presented the assessment Monday at a meeting of economy-related ministers, held to discuss domestic consumption and devise appropriate responses. 

The government said that although domestic demand is recovering more slowly than exports, the worst is over and it will gradually improve as prices stabilize and exports remain strong.

Rates of recovery will vary by sector, the ministry said, as inflation and interest rates ease and corporate performance and household income improve.

But it projected continued difficulties for the construction industry and the slow recovery of consumption in certain regions of the country.