[Economic Outlook] Government Fuels "Q4 Rebound"... Focus on National Finances and Employment Indicators

September Financial Trends and October Employment Trends: Key Economic Schedule

Can the Korean economy wake up from the slump caused by the novel coronavirus infection (COVID-19)? (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] "If we continue the success of (COVID-19) quarantine measures and maintain the economic rebound trend in the fourth quarter, our economy will be able to recover from the shock of COVID and enter a normal trajectory starting from the first half of next year."

President Moon Jae-in said this at the Blue House senior secretaries and aides meeting on the 2nd. The government is also making every effort to boost the economy in the fourth quarter, as announced by President Moon.

This week, data related to the national budget (fiscal balance) and employment will be released. These statistics will show how much the Korean economy has recovered from the shock of the COVID-19 resurgence following the August 15 Liberation Day rally.

First, the government will announce the "September Fiscal Trend" on the 10th. The fiscal trend is an indicator showing the national budget, including revenue and expenditure.

The managed fiscal balance has been recording the largest deficit ever each month this year. Although national tax revenue is gradually improving, the accumulated deficit has left the national budget in a difficult situation, and it is worth watching whether this trend will continue.

On the 11th, Statistics Korea will release the "October Employment Trend." Previously, the number of employed people in September decreased by 392,000 compared to a year ago, marking the largest decline in four months.

With various indicators rebounding after the COVID-19 resurgence, the key point is whether the employment situation improved last month.

The "November Recent Economic Trends," released on the 13th, will include preliminary consumption data such as domestic card sales and other statistics that provide an estimate of the current economy.

The Bank of Korea will publish the "October Financial Market Trends" on the 11th.

In the previous September report, the outstanding household loans at banks increased by 9.6 trillion won in one month.

This was the second-largest monthly increase following the record 11.7 trillion won in August. It indicates that the unprecedented loan growth trend continued due to the COVID-19 situation and low interest rates.

Due to the effects of "Yeongkkeul" (borrowing to the limit) and "Bittou" (investing with borrowed funds), other loans including unsecured loans also increased by about 3 trillion won in September, following the August record of 5.7 trillion won.

This content was produced with the assistance of AI translation services.