Depression of South Korea's Manufacturing Industry
Several business indexes, which seemed to be slightly improved until last year March, recently have indicated changes. The growth of industrial produce, which had been backed up by Korean government's consume encouraging policy, was halted in April. People's willingness to consume is still a bit existing, but it is merely led to actual transactions. As a result, the stocks have been piled up, and the rate of factory operation has been plummeted. Some experts even concern that people's hope for economic rise could wane again.
A majority of experts said that the decline of industrial produce and the lowest rate of factory operation among last 7 years are the signals of "realization of economic depression". The slump of main export items such as automobile and semiconductor has been persisted. Moreover, the economic indexes of April does not reflect the impact of restructuring of shipbuilding and marine industries. Judging from all these circumstances, either economic depression or economic shrinkage will be inevitable.
The upcoming U.S. raise of the interest rate will increase the power of dollars, which is going to trigger outflow of the newly emerging nations' capital. It is obvious that this situation will have negative impact on South Korea's economy. What is worse, it is also probable that the economic growth rate of this year could end up at 2.6% if this ominous economic circumstances continue.