The decline in consumption propensity of single-person households is the highest..."Restrictions on domestic recovery".

Consumer sentiment among single-person households has shrunk significantly, limiting the recovery of domestic demand, according to an analysis.

According to the Bank of Korea's recent analysis of the economic impact of the spread of single-person households, the decrease in single-person households was the largest at 5.8% from 2019 to 2023.

It was followed by a decrease in three-person households of 4.3% and a decrease in two-person households of 2.5%.

As of last year, the proportion of single-person households was 35.5% of the total, which increased rapidly after COVID-19, and during the same period, they accounted for 20% of total consumption expenditure.

The problem is that the average consumption propensity of single-person households deteriorates, which can negatively affect domestic demand.

The Bank of Korea analyzed that in the case of young single-person households, the burden of housing expenses, such as increased monthly rent during the COVID-19 period, limited their consumption tendency.

Also, the elderly single-person households have low job security, and the scar effect continues after the COVID-19 crisis.

Accordingly, the Bank of Korea emphasized that the housing, income and employment stability of these single-person households are important to strengthen the domestic base.

However, he added that it is urgent to come up with measures to cover all vulnerable groups as single-person household support measures can lead to unintended consequences such as conflicts with low birth rate measures.