Economic recovery for SMEs to slow down in 2019: KOSBI
- 5 years ago
At this time of the year, many think tanks in South Korea release their economic outlook for next year.
And on Sunday, a research institute focused on small and medium sized businesses revealed that the pace of recovery for these firms is expected to slow in 2019.
Ko Roon-hee reports.
The Korea Small Business Institute warned Sunday that the pace of economic recovery for the nation's small and medium sized firms is expected to weaken in 2019,... mainly due to the grim outlook for exports and employment.
The institute says although exports could grow in the 4-percent range in 2019, the pace of the growth is likely to slow down...due to the growing trade protectionism, such as the ongoing trade war between the U.S. and China.
Because many countries rely heavily on exports to China, South Korea's economy is likely to be hit as well.
Economists from Beijing's Renmin University say China's economic growth is expected to mark six-point-six percent this year and slow to six-point-three percent in 2019.
This comes as China struggles with challenges associated to trade and structural reform on the supply-side... which refers to the shedding of excess capacity in heavy industries such as steel.
Another core reason for the gloomy outlook is employment.
Despite the government's efforts to create jobs, the institute says slowing population growth and restructuring in the self-employed sector will negatively affect South Korea's job market.
For example, the number of employees in small businesses with 1 to 4 workers this year through November decreased by 94-thousand...compared to same period last year.
The institute added there's a risk of greater economic polarization...as a rise in borrowing costs could hurt the self-employed.
For 2019, the institute says small and mid-sized businesses should focus on identifying new overseas markets and working on innovative growth.
Ko Roon-hee, Arirang News.
And on Sunday, a research institute focused on small and medium sized businesses revealed that the pace of recovery for these firms is expected to slow in 2019.
Ko Roon-hee reports.
The Korea Small Business Institute warned Sunday that the pace of economic recovery for the nation's small and medium sized firms is expected to weaken in 2019,... mainly due to the grim outlook for exports and employment.
The institute says although exports could grow in the 4-percent range in 2019, the pace of the growth is likely to slow down...due to the growing trade protectionism, such as the ongoing trade war between the U.S. and China.
Because many countries rely heavily on exports to China, South Korea's economy is likely to be hit as well.
Economists from Beijing's Renmin University say China's economic growth is expected to mark six-point-six percent this year and slow to six-point-three percent in 2019.
This comes as China struggles with challenges associated to trade and structural reform on the supply-side... which refers to the shedding of excess capacity in heavy industries such as steel.
Another core reason for the gloomy outlook is employment.
Despite the government's efforts to create jobs, the institute says slowing population growth and restructuring in the self-employed sector will negatively affect South Korea's job market.
For example, the number of employees in small businesses with 1 to 4 workers this year through November decreased by 94-thousand...compared to same period last year.
The institute added there's a risk of greater economic polarization...as a rise in borrowing costs could hurt the self-employed.
For 2019, the institute says small and mid-sized businesses should focus on identifying new overseas markets and working on innovative growth.
Ko Roon-hee, Arirang News.