S. Korean economy continues to struggle amid COVID-19 pandemic
- 4 years ago
'코로나 충격' 3월 소비 1%↓•산업생산 0.3%↓…투자는 증가
The latest production figures highlight how the COVID-19 pandemic is choking the growth of the South Korean economy.
To revitalize the local economy, the finance ministry has prepared a second round of financial support for small businesses.
Our Kim Dami has the details.
Three months into the COVID-19 pandemic, the local economy continues to struggle.
South Korea's monthly industrial output edged down point-three percent in March.
Mining and manufacturing industries performed better despite the pandemic, but service production was down over four percent due to the intense social distancing campaign. The figures for services are, in fact, the lowest since 2000.
Consumer spending was down one percent,... but facility investment increased by well over 7 percent.
Statistics Korea noted that figures for manufacturing and exports will be even worse next month as the impact of the virus will be greater for major exporting countries.
Indicators showing current and future economic conditions both fell by the largest amount in over a decade.
The pandemic has also dragged the country's business sentiment for April to a low not seen since the global financial crisis over a decade ago.
According to the Bank of Korea on Wednesday, the business sentiment index for all industries was down three points on-month to 51.
Business outlook for next month also fell for both manufacturing and non-manufacturing industries.
Companies said economic uncertainties and lower demand were making the situation difficult.
To boost the local economy, South Korea's finance ministry will, from next month, provide 8-point-2 billion U.S. dollars of new relief loans to small businesses.
On top of expanding the first relief package from around 10 billion dollars to over 13 billion dollars, the government has prepared the second round of support measures for small businesses that have been hit hardest by the pandemic.
Adding that the rescue plan comes as the global economy is faced with an "unprecedented crisis and recession," Hong vowed to get the country ready for life after the COVID-19 crisis and prepare it for the Fourth Industrial Revolution.
Kim Dami, Arirang News.
The latest production figures highlight how the COVID-19 pandemic is choking the growth of the South Korean economy.
To revitalize the local economy, the finance ministry has prepared a second round of financial support for small businesses.
Our Kim Dami has the details.
Three months into the COVID-19 pandemic, the local economy continues to struggle.
South Korea's monthly industrial output edged down point-three percent in March.
Mining and manufacturing industries performed better despite the pandemic, but service production was down over four percent due to the intense social distancing campaign. The figures for services are, in fact, the lowest since 2000.
Consumer spending was down one percent,... but facility investment increased by well over 7 percent.
Statistics Korea noted that figures for manufacturing and exports will be even worse next month as the impact of the virus will be greater for major exporting countries.
Indicators showing current and future economic conditions both fell by the largest amount in over a decade.
The pandemic has also dragged the country's business sentiment for April to a low not seen since the global financial crisis over a decade ago.
According to the Bank of Korea on Wednesday, the business sentiment index for all industries was down three points on-month to 51.
Business outlook for next month also fell for both manufacturing and non-manufacturing industries.
Companies said economic uncertainties and lower demand were making the situation difficult.
To boost the local economy, South Korea's finance ministry will, from next month, provide 8-point-2 billion U.S. dollars of new relief loans to small businesses.
On top of expanding the first relief package from around 10 billion dollars to over 13 billion dollars, the government has prepared the second round of support measures for small businesses that have been hit hardest by the pandemic.
Adding that the rescue plan comes as the global economy is faced with an "unprecedented crisis and recession," Hong vowed to get the country ready for life after the COVID-19 crisis and prepare it for the Fourth Industrial Revolution.
Kim Dami, Arirang News.