Changwon, Q4 Outlook Index at 51.6... Future Looks Uncertain

Changwon Chamber of Commerce: "86.5% of Responding Companies Will Not Achieve This Year's Performance"

Changwon Chamber of Commerce and Industry.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] The outlook index for companies in the Changwon area of Gyeongnam for the fourth quarter of this year appears somewhat low, indicating that it will take a long time for the economy to recover.

The Changwon Chamber of Commerce and Industry announced the results of the "2020 4th Quarter Changwon Area Corporate Business Outlook Survey" conducted on manufacturing companies in the Changwon area on the 28th.

In this survey, which involved 126 manufacturing companies, the outlook index for the fourth quarter was 51.6, and the actual performance index for the third quarter was 50.8, significantly below the baseline.

Compared to the previous quarter's business outlook survey, where the 3rd quarter outlook and 2nd quarter actual BSI were 39.5 and 23.5 respectively, marking historic lows, the index has somewhat increased.

Also, the actual performance was higher than the 3rd quarter outlook of 39.5 surveyed in the 2nd quarter, showing a somewhat eased performance compared to the end of the 2nd quarter forecast.

When asked about the expected economic growth rate of South Korea this year, 37.3% of the responding companies answered that it would be below -2.0%, and 98.4% of respondents predicted that the Korean economy would show negative growth this year.

Regarding the achievement of operating profit targets and maintenance of normal management, 86.5% of respondents answered that they "did not achieve the target," 11.1% said they "achieved or were close to the target," and 2.4% said they "exceeded the target." Among those who answered that they did not achieve the target, 16.2% said they did not even reach half of the target.

Due to concerns about the resurgence of COVID-19, when asked about the current status of maintaining normal management, 48.4% of respondents said they are "already operating under emergency management," 22.2% said they "plan to switch to emergency management," and 29.4% responded that they are "operating under normal management."

Additionally, regarding policies that must be implemented in parallel for the successful promotion of the Korean New Deal currently being pursued by the government, more than half, 56.3%, answered "support for diversification of work forms."

A representative from the Changwon Chamber of Commerce and Industry said, "Although the pace has somewhat slowed, the worsening sentiment in Changwon's manufacturing sector remains unchanged. The existing adverse factors such as the US-China trade dispute and Japan's export restrictions have been compounded by the COVID-19 situation, and the recent sharp decline in exchange rates has worsened trade conditions for export companies."