Korea Suffers Biggest Decline in Private Consumption
09 May, 2020
Korea saw the largest drop in private consumption on record this past year even prior to the coronavirus epidemic struck.
According to Statistics Korea on Thursday, the common monthly spending of households fell 3.2 percent to W2.46 million in 2019 (US$1=W1,226). That was the largest decline because the government commenced tallying such figures in 2003 and the very first time that household spending declined for just two years running.
Spending declined despite the fact that incomes rose because taxes and other payroll deductions like state pension and insurance payments rose. They increased 10.6 percent on-year to W873,000, the largest margin on record.
Income and property taxes rose 17.7 percent, while spending on gifts for congratulations and condolences grew 9.4 percent.
A closer look at average monthly spending demonstrates 14.1 percent was spent on accommodation, 13.5 percent on groceries except alcohol, and 12 percent on transportation.
Households whose main wage earner was in his or her 40s spent the most at W3.2 million per month, W350,000 a lot more than households led by those in their 50s. The main reason was shelling out for education. Households led by people within their 50s spent W251,000 per month on education but those led by people within their 40s W494,000.
Those in the bottom 20 percent of the wage bracket spent W1 million per month while the top 20 percent spent W4.22 million.
Source:
TAG(s):