KDI “코로나19 재확산으로 경기 다시 위축될 가능성 높아져”<br /><br />South Korea's economy seems to have improved last month..., but the resurgence of cases in recent weeks could be undoing all that.<br />Many of the positive indicators for August don't yet reflect the stricter social distancing measures now in effect, as our Kim Sung-min reports. Before the resurgence of COVID-19, the local economy was improving.<br />Data from the Korea Development Institute show that in August business and consumer sentiment both improved from the month before.<br />The coincident composite index, reflecting current economic performance, rose by two tenths of a point, and the index for future business conditions edged up four tenths of a point.<br />Exports also improved as the economies of Korea's major trading partners like China and the U.S. opened up.<br />Average daily exports fell by 3-point-8 percent from a year earlier, an improvement from the drop of 7-point-1 percent seen in July.<br />But the resurgence of COVID-19 in South Korea, according to KDI, means these indicators could fall again from September.<br />The biggest hit is likely to be in the service sector, which has suffered the most in the pandemic already.<br />Exports could also contract depending on the situation globally.<br />"We could assume that manufacturing could also take a hit as consumption falls. Also, since manufacturing is directly linked to exports, we can assume that exports could decline again with the resurgence of the virus in other major countries."<br />In fact, Korea's consumption has already fallen significantly with the latest spike in cases.<br />According to Shinhan Card, credit card spending from August 19th through the 30th, when stricter social distancing came into effect, dropped by 12-point-1 percent on-year.<br />People also struggled to find work last month.<br />The government's provision of unemployment benefits rose 51-point-2 percent compared to the same time last year.<br />Kim Sung-min, Arirang News<br />
