The private economy diagnosis and the government economic diagnosis were clearly separated.
According to the Korea Economic Research Institute (Korea Economic Research Institute), the business due diligence index (BSI) of the 600 largest companies in July decreased by 0.3 points from June, and the domestic market also showed a negative outlook following June (99.0) due to a slowdown in the domestic market. It was announced on the 25th that
Deputy Prime Minister Hong said at a party-government council meeting on the economic policy direction for the second half of the year on the 25th, "Recently, our economy has gone through a dark and difficult tunnel of the Corona 19 crisis and is showing a clear economic recovery in exports and domestic demand. It is time to return to a full daily life.”
The Korea Economic Research Institute announced on the same day that non-manufacturing industry alone was 104.4, an increase of 5.0p from the previous month, turning into a 'positive outlook', and the manufacturing forecast was 100.9, 4.2p lower than the previous month, indicating a decline for four consecutive months since March.
Regarding the 'negative outlook' for domestic demand, the Korea Economic Research Institute said, "The profitability is expected to be negative for a continuous period following June (99.0) due to the slowing growth since March." "Amid the recent rise in international raw material prices, companies have reduced demand. As the cost increase has not been fully passed on to the selling price due to concerns over such concerns, the trend of deterioration in profitability is expected to continue for the time being.”
Deputy Prime Minister Hong said, "We will actively discover and replace policy tasks that can overcome the recent accelerating crisis and accelerate the pace of economic recovery." We will focus on preparing the additional supplementary budget (additional budget) and do all we can for the early recovery of the economy," he said.
As for the cause of the decline in the manufacturing outlook for the fourth consecutive month since March, with the manufacturing outlook lower than the previous month by 4.2p, the Korea Economic Research Institute said, “The uncertainty in production and investment of manufacturing companies has increased due to the prolonged shortage of major raw materials and semiconductor parts. Due to the characteristics of the Korean economy, where the proportion of manufacturing, such as manufacturing, is high, uncertainty in the manufacturing economy may act as a negative factor for the overall economy.”