Korea Business Confidence January 2021

Korea

Korea: Business confidence deteriorates in January

December 30, 2020

Business confidence among manufacturing firms fell to 77.0 in January from December's 81.0. As a result, the index moved further below the 100-point threshold, indicating deteriorating sentiment among firms.

The downturn was led by a deterioration of domestic demand-oriented firms’ prospects, likely due to elevated Covid-19 cases and tighter restrictions in Korea in recent weeks. Businesses grew slightly more downbeat on their prospects for sales and profitability, even though optimism regarding raw material prices improved. Contrastingly, export-oriented firms saw a slight improvement in their expectations as their pessimism eased.

FocusEconomics Consensus Forecast panelists expect fixed investment to rise 2.6% in 2021, which is up 0.1 percentage points from last month’s forecast. In 2022, the panel expects fixed investment to grow 3.2%.


Author:, Junior Economist

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Korea Business Confidence January 2021

Note: Business Survey Index (BSI). An index value above 100 indicates an optimistic outlook while a value below 100 indicates a pessimistic outlook.
Source: Bank of Korea.


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