South Korea Consumer Confidence Falls Amid Political Uncertainty
London, 23 December 2024
This December, the South Korean Composite Consumer Sentiment Index (CCSI) fell from 100.7 in November to 88.4, its lowest level in more than two years.
Following President Yoon Suk Yeol's controversial proclamation of martial law on December 3 and subsequent impeachment on December 14, this decline underscores the mounting economic concerns fuelled by political uncertainty.
Significant economic effects of the political unrest include the benchmark Kospi index's steep drop and the South Korean won's 15-year low. Expectations for consumer expenditure also significantly declined, as sentiment towards durable items, dining, and travel declined.
In order to strengthen the economy and sustain growth at this difficult time, Governor Rhee Chang-yong emphasised the significance of fiscal measures. (Written and edited by The Decision Maker, Finance editors)
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