Recent data shows signs of optimism for South Korea’s economy

By GENN

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Recent economic data from South Korea provides some grounds for optimism though rising infection numbers has meant there is still a degree of caution.

According to Statistics Korea industrial production in July had increased by a seasonally-adjusted 1.6% from the previous month. Separately the IHS Market purchasing managers’ index went up to 48.5 for August from 46.9 in July which is the best figure since February.

Tim Moore, director at IHS Markit said, “August data provides another signal that a turning point has been reached for the South Korea manufacturing sector (the reading) pointed to only a modest deterioration in overall business conditions.” Moore also went on to say, “subdued global economic conditions due to the COVID-19 pandemic continued to hold back customer spending in August, but there were a number of reports citing a boost to demand from the return to work among clients in the U.S. and Europe.”

Export data has shown a continued decline but there is evidence that a corner has almost been turned. Per day exports to the EU year on year were up 4.1% and the US 6.4%. Chun Kyu-yeon an economist with Hana Financial Investment said, “exports will continue to recover during the second half and turn positive next year,” and that “global demand are clearly showing recovery along with economic resumptions.” 

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