Worsening Economy

The heart of the Gangnam district of Seoul. (Photo by Leeyan Kym N. Fontano via Wikimedia Commons)
The heart of the Gangnam district of Seoul. (Photo by Leeyan Kym N. Fontano via Wikimedia Commons)

 

The Ministry of Strategy and Finance announced on Nov. 11 that the Korean economy is now subject to a greater downside risk due to the presence of external uncertainties and the slow recovery of consumption and investment.

First of all, consumption and investment indicators are deteriorating again. According to the Bank of Korea, private consumption increased 1.6 percent from a year earlier during the third quarter of 2014, but showed a decline in October.

Capital spending, which increased 12.7 percent in Sept., is expected to have dropped in the following month due in part to reduced machinery imports.

“Both positive and negative factors are found concerning mining industry production for October, including the termination of automakers’ strikes and increasing external uncertainties such as the weak yen and the eurozone recession,” the Ministry explained, implying that the production index could get worse.

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