KDI “코로나19 재확산으로 경기 다시 위축될 가능성 높아져”

South Korea's economy seems to have improved last month..., but the resurgence of cases in recent weeks could be undoing all that.
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.
Data from the Korea Development Institute show that in August business and consumer sentiment both improved from the month before.
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.
Exports also improved as the economies of Korea's major trading partners like China and the U.S. opened up.
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.
But the resurgence of COVID-19 in South Korea, according to KDI, means these indicators could fall again from September.
The biggest hit is likely to be in the service sector, which has suffered the most in the pandemic already.
Exports could also contract depending on the situation globally.
"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."
In fact, Korea's consumption has already fallen significantly with the latest spike in cases.
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.
People also struggled to find work last month.
The government's provision of unemployment benefits rose 51-point-2 percent compared to the same time last year.
Kim Sung-min, Arirang News