Economic Bulletin December 2020
The Green Book: Current Economic Trends
Services improved from the previous month, but retail sales and manufacturing
slowed, as well as facilities investment and completed construction works.
Industrial production stayed flat from the previous month in October. Mining and
manufacturing slowed (down 1.2%, m-o-m and down 2.2%, y-o-y) and services output (up
1.2%, m-o-m and down 2.5%, y-o-y) improved. Industrial production fell 2.7 percent year
Retail sales (down 0.9%, m-o-m and down 0.2%, y-o-y) declined, and so did facilities
investment (down 3.3%, m-o-m and down 1.0%, y-o-y) and completed construction works
(down 0.1%, m-o-m and down 8.9%, y-o-y).
Exports rose 4.1 percent year-on-year in November, despite fewer days worked (0.5 days).
Average daily exports, an indicator calculated according to the days worked, went up 6.4
percent from a year ago (US $1.87 billion (November 2019) → US $1.99 billion (November
The consumer sentiment index (CSI) increased 6.3 points in November to 97.9. The
business sentiment index (BSI) for the manufacturing sector rose 6 points to 85, and the
BSI outlook for December went up 5 points to 81.
The cyclical indicator of the coincident composite index for October increased 0.5 points
to 98.3, and the cyclical indicator of the leading composite index rose 0.4 points to 101.8.
The economy lost 273,000 jobs year-on-year in November, and the unemployment rate
rose 0.3 percentage points from a year ago to 3.4 percent.
Consumer prices rose 0.6 percent from a year ago, and core inflation rose 1.0 percent.
KOSPI jumped in November on expectations for COVID-19 vaccines. The won strengthened
and Korea treasury yields went up in line with rising market interest rates.
Home prices continued to increase in November (up 0.32% → up 0.54%, m-o-m), as well as
Jeonse (lump-sum deposits with no monthly payments) prices (up 0.47% → up 0.66%, m-o-m).
The economy has seen exports improving steadily. However, uncertainties are
increasing as to the real economy with a resurgent virus in mid-November, which has
brought stricter social distancing into effect again.
Worries continue over the slowing real economy amid a resurgent virus in major economies
and stronger lockdowns that follow. However, there are also expectations for a recovery
as COVID-19 vaccines are on the way.
The government will continue with its disease prevention efforts, and will do its utmost to
help the economy see a strong rebound.
- 2021 economic policies
Economic News Briefing
- GDP fell 1.1% in Q3 2020
- Korean FDI amounts to US $10.77 in Q3 2020
* For full text, please open the attached PDF file.