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Although the Korean economy’s sluggish domestic demand is deepening, it is forecasted that some of the sluggish economy seems to be easing as product exports increase.
On the 7th, the Korea Development Institute (KDI) made a diagnosis in’February Economic Trends’, saying, “The domestic demand slump has intensified due to the third corona19 epidemic in Korea, but it seems that the economic slump is partially easing as product exports increase.”
According to’February Economic Trends’, credit card sales in January estimated based on Shinhan Card sales decreased 14.4% from a year ago. Service industry production declined 2.2% in December last year. Accommodation and restaurant businesses (-17.1%→-39.5%) and art, sports, and leisure-related service businesses (-30.0%→-40.6%) declined sharply. In addition, it was found that the labor market was frozen, centering on the service industry and temporary and daily workers.
In December of last year, the number of employed fell by 628,000. The decline was greatly increased from the previous month (-273,000 people), especially in the service industry (-287,000 people → -622,000 people) and temporary and daily workers (-206,000 people → -521,000 people). Was great. However, KDI believes that exports and facility investment have maintained a high growth trend due to the improvement in external product demand, and the manufacturing industry has maintained a solid growth trend. The January export growth rate was 11.4%, exceeding the 10% level following the previous month (12.6%). In December last year, facility investment also increased by 5.3%.
KDI said, “It is believed that the manufacturing industry is showing a solid growth trend, such as continued increase in facility investment, mainly in semiconductors, and is partially easing the economic downturn.”
Sejong = Reporter Kwak Jin-seong [email protected]
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