Korea’s domestic demand to cool down in second half
The Korea Chamber of Commerce and Industry (KCCI) said that certain industries largely dependent on domestic demand like construction, steel and textiles are expected to suffer in the second half of the year due to the continuous slump in consumption. Leading industries, except the automobile industry, are estimated to stagnate or decline in the second half of 2004. However, consumption in the automobile sector which dropped by 24.7% in the first half of the year compared to the same period of last year, is going to increase by 19% in the July-December period compared to the corresponding period of last year. On the other hand, domestic demand for steel and construction is expected to decline in the next six months. The year-on-year figures will show a drop of 0.2% and 10% respectively. KCCI also pointed out that the growth rate of exports will decelerate in the mentioned period despite continued strong exports in all industries except steel. The growth in steel industry exports is expected to mark a decline in the second half due to the drastic fall in demand as China reins its overheated economy.