On the 7th, KDI evaluated that consumption and employment have drastically declined due to the recent re-proliferation of Corona 19 in’February Economic Trends’, and the economic slump is continuing, centered on domestic demand. KDI analyzed that “external activities have contracted due to strengthened quarantine, such as fears of corona 19 infection and social distancing, resulting in a sharp decline in the consumption of semi-durable goods and production in the face-to-face service industry.
Credit card sales in January estimated based on Shinhan Card sales decreased 14.4% from a year ago. The decline was small compared to last December (-16.2%), but compared to November (-4.2%), the decline is still large. 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, which is a larger decline from the previous month (-1.4%). In particular, the reinforced social distancing measures in early December resulted in a sharp contraction in the lodging/restaurant business (-17.1%→-39.5%) and art, sports, and leisure-related service businesses (-30.0%→-40.6%).
However, it is explained that the economic downturn is partially easing as product exports increase. The export growth rate in January this year was 11.4%, a high level following the previous month (12.6%).
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