■ The Korean economy is showing a deepening contraction and mounting uncertainties as COVID-19 spreads.

○ February’s all industry production fell due to the novel coronavirus while the labor market started shrinking mainly in services.

- The service industry exhibited huge losses in production and employment; mainly in sectors related to tourism and travel which highly depend on face-to-face interactions.

- Retail sales dropped mainly in duty-free and department stores due to fewer tourists and social distancing. The composite consumer sentiment index also dropped sharply, pointing to a contraction in consumption.

- Manufacturing production and the capacity utilization rate decreased on disruptions in the supply of automobile parts from China.

- But, the decline in exports eased in March led by automobiles and semiconductors, suggesting that COVID-19 has had a limited negative impact in manufacturing thus far.

○ Given the soaring number of confirmed COVID-19 cases in Europe and the US since March, the impact from the decreasing overseas demand will grow.

- As the possibility of an economic slowdown in major countries looms larger, global financial markets have become increasingly volatile with plunges in stock prices and interest rates.

- Expectations for the future of the economy have deteriorated, leading to continued declines in sentiment indicators related to production and consumption.

Major Economic Indicators

Summary and Assessment

Major Indicators of the Korean Economy

1. Gross Domestic Product
　(at 2015 Constant Prices)

2. Economic Activity

3. Consumption

4. Equipment Investment

5. Construction Investment

6-1. Exports, Imports and Terms of Trade

6-2. Current Account and Financial Account

7. Employment and Wage

8. Price Indices

9-1. Financial Market (I)

9-2. Financial Market (II)

10-1. Major Indicators of the World Economy (I)

10-2. Major Indicators of the World Economy (II)