Seoul, April 7 (TIWN) The South Korean economy is on a moderate recovery track, but it faces greater downside risks as external economic uncertainty has heightened amid the Ukraine crisis, a state-run think tank said on Thursday.

Asia’s fourth-largest economy has extended its recovery momentum, led by robust growth in the manufacturing sector, but business sentiment has worsened as Russia’s invasion of Ukraine has jacked up raw material prices, Yonhap news agency reported citing the Korea Development Institute’s (KDI) monthly economic assessment report.  “Trade balance deteriorated due to soaring raw material prices and consumer prices jumped, which could put a drag on the recovery of the South Korean economy moving forward,” the report said.  South Korea’s consumer prices grew more than 4 per cent for the first time in more than 10 years in March as energy prices shot up amid Russia’s war with Ukraine.