Losing Steam
The Hyundai Research Institute announced on Nov. 22 that a recovery of the Korean economy is likely to take time due to the lack of traction.
“The steel, shipping and shipbuilding industries have already been in crises for a while due to a supply glut, and the ICT and automobile sectors are expected to face the same situation next year,” it explained.
According to the institute, the automobile industry is likely to witness increases in export and domestic consumption at the same time next year while showing its own limitations as a growth driver and the ICT sector’s growth is predicted to be limited although its output would be on the rise, thanks to a global demand recovery.
“Things are pretty gloomy for the other sectors, including construction, where the industrial demand is forecast to shrink due to a 6 percent cut in SOC budget,” it continued, adding, “The supply-demand imbalance in the construction sector is likely to result in a long-term recession to give rise to similar recessions in those sectors associated with itself.”
The institute warned that most industries would have to be worried about their survival next year, with few capable of fulfilling the role of a growth leader.