2009년 8월 26일 수요일

There is an ongoing debate over whether Korea economy is getting recovered or not.
The fundamental background that brings this debate is based on remarkable increasing in
Korea stock index-KOSPI.

There are any doubts that some index are showing quite optimistic signal in recovery of Korea ecnomy SUCH AS consumption index, export index and prospection to Korea economy index conducted by many research Institution.
even though this optimistic prospeciton, we can not have strong confidence in recovery of Korea economy. The compelling reason behind of this argument can be explained with several grounds.

First of all, we need to check index realated to consumption. None of us can deny this consumption is firmly based on consumption in Foreign contry. actually many of this consumption is derived from China and other developing contries. actually, US and other developed contreis are quite not that helpful in boosting korea economy nowadays.
Critical problem that I want to bring here is Domestic consumption.
consumption can increase when consumers have rosy future to their ecnomic situation.
however, considering jobless rate in KOrea, it can nor be infered that consumer can be confident in consumption. Actually , In spite of many shiny indexes in ecnomy, jobless rate in Korea
is contimuously decreasing since this depression is started invisibly-last september.
despite Fiscal policy and expansion on monetary by realatedd institution have been effective in huge part of economy, jobless rate increased by 3 percentage point comparing that in last september. That reveals that increasing in consumption index is not exactly due to healthy recovering in korea ecnomics. much of that increse can be attributed to increasing in Foeign consumption index especially china.

Second of all, the increasing in export has also relutant secrets.

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