The Korea Development Institute (KDI) diagnosed, “Recently, Korea’s economy has been intensifying in domestic demand due to the third corona19 epidemic in Korea, but it is believed that the economic slump is partially easing as product exports increase.”
On the 7th, KDI made such an evaluation in’February Economic Trends’.
KDI analyzed that “consumption and employment have drastically declined due to the re-proliferation of Corona 19, and the economic slump is continuing, centered on domestic demand.”
He added, “As external activities contracted due to strengthened quarantine such as corona 19 infection concerns and social distancing, the consumption of semi-durable goods and production in the face-to-face service industry increased, and the number of employed, mainly in the service industry, decreased.
Credit card sales in January estimated based on Shinhan Card sales decreased 14.4% from a year ago. The decline was smaller than -16.2% in December of last year, but the decrease is still large compared to -4.2% in November.
KDI predicted that “the sluggish consumption will continue for the time being as the strengthened social distancing measures continue in January.”
The production of the service industry declined 2.2% in December last year, a larger decline from -1.4% last month.
In particular, the reinforced distance-taking measures in early December resulted in a sharp decline in the lodging/restaurant business and art/sports/leisure-related service industries.
The labor market also froze, centering on the service industry and temporary and daily workers.
KDI just diagnosed, “The manufacturing industry continued to grow well as exports and facility investment maintained a high growth trend due to improved demand for foreign goods.”
“The export of goods, mainly on information and communication technology and automobiles, has improved and export prices have risen, and inventory has continued to decline since September last year.” It is believed that the economic downturn is partially easing while showing growth.”
