KDI warns of "economic depression" for six consecutive months l KBS WORLD Radio

Photo: YONHAP News

The Korea Development Institute (KDI) maintained a bleak diagnosis of the South Korean economy. In its monthly report, the agency said on Sunday 8 that the national economy in general is still in depression, given the weak internal and external demand.

This institution used the term "depression" for the first time in its April report and since then it has maintained that diagnosis, although in the previous five months – until March – it only spoke of economic "stagnation".

He explained that although general industrial production grew 0.5% in July compared to the previous month, it was because that month had one more business day. Meanwhile, the manufacturing inventory coefficient reached 115.2%, blocking production growth.

Retail sales, on the other hand, fell 0.3% in July compared to the same month last year, while investment in equipment registered a year-on-year decrease of 4.7%.

The consumer confidence index lost 3.4 units in August compared to the previous month to reach 92.5 points; and imports of consumer goods increased only 2.9%, much lower than the 13.5% recorded in July.