As dark clouds have been gathering over the global economy, Korea’s economic outlook is becoming more uncertain.
Korea's composite leading index (CLI) stood at 98.82 in August, said the Organization for Economic Cooperation and Development (OECD) on Oct. 13. The August CLI fell 0.03 point from July. The index predicts what will happen in the next six to nine months. A reading exceeding 100 is interpreted as indicating economic expansion, while an index below 100 signals economic contraction.
Korea’s CLI has been on the decline for 27 months in a row after peaking at 101.72 in May 2017, the longest-ever decline since the index was first announced in January 1990. It has been a year and a month since the index slipped below 100.
In August, the leading economic index of all OECD member countries arrived at 99.06, down 0.04 point from the previous month. It sank for 20 months running since December 2017. The index itself was the lowest since 98.68 in September 2009 when the global financial crisis was rampant.