S. Korea's business sentiment turns pessimistic for February: KERI
- 5 years ago
기업 경기전망 금융위기 이래 10년만에 최악…"내수침체 심화"
Latest data released by the Korea Economic Research Institute shows local companies are pessimistic about overall business conditions for next month.
The report pointed out low domestic demand and uncertainties in exports as the key contributing factors.
Ko Roon-hee provides a closer look.
According to the Korea Economic Research Institute on Tuesday, local firms have a grim outlook for the nation's economy in February.
Based on a survey of the top 6-hundred companies in terms of sales, the business sentiment forecast for next month hit 81-point-1... the lowest forecast since the aftermath of the global financial crisis in 2009.
A reading below 100 means there are more pessimists about the local economy than optimists.
The institute pointed to reasons at home and abroad for the bleak outlook.
Businesses were worried over weak domestic demand... meaning many aren't willing to invest in facilities or construction.
This comes after a rise in labor costs... stemming from the more than 10-percent increase in the minimum wage in 2019.
Another big reason came from concerns over export conditions.
Last week, Chinese officials announced that China's economy expanded by 6-point-6-percent in 2018... the lowest figure since 1990.
This has negatively affected Korean companies' sentiment... with many firms relying heavily on exports to China.
The institute added that reports about the decrease in exports also played a role.
According to the Korea Customs Service, exports were down almost 15-percent on-year in the first 20 days of January.
This is mainly due to a fall in chip shipments... which declined almost 30 percent.
The situation for small and medium-sized businesses isn't looking great either.
According to a separate report by the Korea Federation of SMEs, the business sentiment outlook among these firms for February was at its lowest since 2015.
The report also pointed to the rise in labor costs and concerns over exports.
To improve the current situation, researchers point to the importance of the government producing tangible results in its deregulation and innovative growth policies.
Ko Roon-hee, Arirang News.
Latest data released by the Korea Economic Research Institute shows local companies are pessimistic about overall business conditions for next month.
The report pointed out low domestic demand and uncertainties in exports as the key contributing factors.
Ko Roon-hee provides a closer look.
According to the Korea Economic Research Institute on Tuesday, local firms have a grim outlook for the nation's economy in February.
Based on a survey of the top 6-hundred companies in terms of sales, the business sentiment forecast for next month hit 81-point-1... the lowest forecast since the aftermath of the global financial crisis in 2009.
A reading below 100 means there are more pessimists about the local economy than optimists.
The institute pointed to reasons at home and abroad for the bleak outlook.
Businesses were worried over weak domestic demand... meaning many aren't willing to invest in facilities or construction.
This comes after a rise in labor costs... stemming from the more than 10-percent increase in the minimum wage in 2019.
Another big reason came from concerns over export conditions.
Last week, Chinese officials announced that China's economy expanded by 6-point-6-percent in 2018... the lowest figure since 1990.
This has negatively affected Korean companies' sentiment... with many firms relying heavily on exports to China.
The institute added that reports about the decrease in exports also played a role.
According to the Korea Customs Service, exports were down almost 15-percent on-year in the first 20 days of January.
This is mainly due to a fall in chip shipments... which declined almost 30 percent.
The situation for small and medium-sized businesses isn't looking great either.
According to a separate report by the Korea Federation of SMEs, the business sentiment outlook among these firms for February was at its lowest since 2015.
The report also pointed to the rise in labor costs and concerns over exports.
To improve the current situation, researchers point to the importance of the government producing tangible results in its deregulation and innovative growth policies.
Ko Roon-hee, Arirang News.