KDI "Expanding Uncertainty...Increasing downside risk"

The Korea Development Institute, a national research institute, recently diagnosed that the Korean economy is facing increasing downside risks due to weak economic sentiment due to growing uncertainties amid delayed economic improvement due to slowing production growth.

In its January economic trend report, which was first published this year, the KDI assessed that production and exports excluding semiconductors are slowing down, and the domestic economy is also showing a weak trend, mainly in the construction industry.

He explained that production in the construction industry continues to decline significantly, and production in manufacturing industries other than service and semiconductors also seems to be slowing down.

The KDI said financial market turmoil, including exchange rates and stock prices, remained limited as commodity consumption and construction investment dragged on and economic sentiment worsened due to domestic political conditions, but the sentiment index for households and businesses fell sharply.