Hong Nam-ki "Disappointed by Private Consumption Decline in Q3"

Posting on SNS about the Q3 GDP preliminary figures

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki evaluated on the 26th that "the rapid economic recovery speed that continued from the third quarter of last year was partially adjusted in the third quarter of this year."

On the same day, Deputy Prime Minister Hong wrote on his social networking service (SNS), "While the base effect from the high growth sustained for four consecutive quarters from the third quarter of last year to the second quarter of this year acted as a technical adjustment factor, strengthened social distancing measures, heat waves, and rising rebar prices throughout the third quarter restricted domestic demand recovery."

He diagnosed, "It is regrettable that private consumption decreased in the third quarter due to sluggish face-to-face service consumption caused by the resurgence of COVID-19," adding, "Although the impact of COVID-19 has diminished compared to previous spread periods, the decline in private consumption constrained the previously ongoing gross domestic product (GDP) growth trend."

He added, "There are also piled-up uncertainties such as global supply disruptions, the possibility of prolonged inflation, and concerns over economic slowdown in the US and China."

He then stated, "The government will focus all policy capabilities on ensuring that the fourth quarter of this year becomes a stepping stone for our economy’s return to normal trajectory and leap forward by steadily promoting phased daily recovery, domestic demand rebound including consumption and tourism, year-end export enhancement, minimizing fiscal non-utilization, and stabilizing people’s livelihoods."