Consumer sentiment hits 8-year high in South Korea
Seoul, Nov 25
South Korea's consumer sentiment rose to an eight-year high in November, buoyed by the country's tariff agreement with the United States and stronger-than-expected quarterly economic growth, the central bank said on Tuesday.
The composite consumer sentiment index (CCSI) climbed to 112.4 this month, up 2.6 points from October, according to a survey by the Bank of Korea (BOK), reports Yonhap news agency.
It marks the highest reading since November 2017 and the first increase in three months.
The index had risen for five consecutive months through August on the back of solid exports and optimism over the government's supplementary budget. It then declined over the following two months as concerns grew over a potential export slowdown caused by the U.S. tariff scheme and a slump in the construction sector.
A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 signals the opposite.
"The increase was mainly attributable to the tariff agreement with the U.S. and the third-quarter gross domestic product growth exceeding expectations," a BOK official said.
After months-long negotiations over the Donald Trump administration's aggressive tariff policies, Seoul and Washington finalized a deal and released a joint fact sheet earlier this month outlining South Korea's US$350 billion investment plans in the U.S., in exchange for a reduction of U.S. tariffs from 25 per cent to 15 per cent.
In the July-September period, real gross domestic product (GDP), a key gauge of economic growth, rose 1.2 per cent from the previous quarter, marking the fastest quarterly expansion since the first quarter of 2024, according to the BOK data.
It also beat the BOK's expectation of a 1.1 per cent gain, said the report.
— IANS
Reader Comments
While this is good news for South Korea, I wonder if such trade deals really benefit ordinary citizens in the long run. The $350 billion investment in US seems massive - hope it doesn't compromise their domestic priorities. Still, consumer sentiment at 8-year high is remarkable! ðŸ‘
South Korea's economic resilience is inspiring! From what I understand, their strong export sector and smart trade negotiations are key drivers. India can learn from their approach to handling international trade pressures while maintaining economic growth. Well done! ðŸ‘
Interesting to see how quickly consumer sentiment can change based on policy decisions. The index dropping for two months and then bouncing back shows how sensitive economies are to international trade policies. Hope this positive trend continues for them!
As someone who follows global economics, I must say South Korea's handling of the US tariff situation has been quite strategic. The fact that they managed to turn around consumer sentiment so quickly speaks volumes about their economic management. Bharat should take notes! 📈
The data shows 112.4 index with above 100 meaning optimists outnumber pessimists - that's a healthy sign for any economy. Good to see international cooperation leading to positive economic outcomes. More countries should focus on win-win trade agreements like this.
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