The declining economy of South Korea serves as a global warning

declining economy

According to the World Economic Outlook report which was released in October, the IMF cut the economic growth outlook of South Korea for this year to 2%, as compared with the previous 2.4%. OECD also slashed the anticipated Gross Domestic Product growth of the country in 2019 to 2.1%. The suit was followed by all investment banks which lowered their outlooks for the South Korean economy.
Reflecting these types of external negative perspectives, the central bank of South Korea also reduced its economic prospects 3 times in a row. In addition to this, the consumer price index of the country has seen any growth in October i.e. 0% growth. A sagging export sector, depreciated won, as well as, a declining foreign direct investment all contribute to an economic winter for South Korea.
There are various external explanations for the gloomy economic performance of South Korea. Firstly, the economy of the country has been weighed down by the worldwide economic slowdown. Ever since 2018, the leading global economies have been growing at a dawdling pace. Due to these factors, the IMF has lowered down its expectation regarding growth for the global economy to 3% from 3.3%. A negative impact has been imposed by a slower world economy on the export-oriented South Korean economy.
Secondly, the trade protectionism of the United States has been taking a toll. In May, an initiative of section 232 investigation was taken by the government of the United States into automobiles, as well as, automotive parts, which have impacted exports of South Korea. The United States is considered to be the largest market of South Korea for automobiles i.e. 33% of South Korean automobiles are exported to the United States. However, there is a shrink in exports to the restriction which have been imposed.

Shreyas Tanna

About Shreyas Tanna

The winner of Mr. Pune 2009 Pageant, Mr. Shreyas Tanna is currently the young, dashing, and dynamic CEO of a market research company called Research N Reports in Pune. Fondly known as RNR, the company specializes in market research as well as industry analysis, and is closely associated with its parent company Absolute Markets Insights (AMI). Mr. Shreyas Tanna began his corporate journey as the Head of Corporate sales & PR at RED Entertainment while pursuing his degree for MMS (Marketing) from the MGM College of Management, Mumbai. After accomplishing the tedious task of balancing his work and education, he further polished his skills in Corporate Sales, Public Relations, Channel Development, Global Client Engagement, Strategic Consulting, and Brand Development by working with HDFC Life and ResearchMoz Global Pvt. Ltd. His dedication towards his work has even won him accolades such as the National Level Performer 2013 – HDFC Life and Mr. ResearchMoz 2015. A disciplined individual with a loving heart, he is often seen taking crisp walks with an engrossed look and a gentle smile within the premises of his company to interact with the various departments. And he will be usually followed by an adorable trail of his beloved trio of Shih Tzu babies proudly known as Gucci, Drake, and Paris. The most enticing thing that you will notice about this content and proud pet parent is his infectious positivity and the firm belief in his eyes, a reflection of his favorite quote, “LIFE IS BEAUTIFUL!”

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