ANN/THE KOREA HERALD – South Korea’s consumer sentiment worsened in March, driven by growing concerns over the country’s economic growth, weak domestic demand and slowing exports, the central bank reported yesterday.
The composite consumer sentiment index dropped to 93.4 this month, a decrease of 1.8 points from February, according to a survey by the Bank of Korea (BOK).
This marks the first decline in three months, following a recovery from a two-year low of 88.2 in December.
The index had rebounded to 91.2 in January and increased further to 95.2 in February.
A reading below 100 indicates more pessimists than optimists, reflecting the negative outlook held by consumers regarding South Korea’s economic prospects.
Consumers expect national economic conditions and the job market to worsen in the coming months, with exports slowing and growth forecasts being revised downward for 2025.
The BOK also noted a negative outlook on household income and private spending, with heightened concerns over growth momentum amid uncertainties surrounding the United States tariff policies and domestic political challenges.
The central bank has forecast the South Korean economy will grow by just 1.5 per cent in 2025, a sharp slowdown from last year’s two per cent expansion.
