Economic growth slows down

Real economic indicators such as production, shipment and consumption for last month all showed signs of slowing down rapidly. In September, industrial production growth was at its lowest point in 1 year and 7 months at 15.1%, which in turn induced the significant deterioration of production, consumption and investment rates.

According to a report on September industrial activity trends released by the National Statistical Office, industrial production increased by only 15.2%, year-on-year, dropping 4.3% from August.

The production growth rate compared to the same period last year was the lowest since 5.1% was posted in February 1999. This is a warning sign that the economy may take a downturn in the near future.

Shipment growth also tapered off to 15.2% from 24.8% in August. Domestic shipment growth fell substantially from 14.1% to 6.2%, the lowest figure since February 1999.

In addition, wholesale and retail sales growth, which indicates consumption trends, also fell to 6.1% from 8.2% in August.

Choi Young-Hae moneychoi@donga.com