Accountants: "Perceived Economic Conditions Improved in Q1... Export Boom and Base Effect"

[Asia Economy Reporter Park Jihwan] Domestic certified public accountants (CPAs) have evaluated that the perceived economy improved in the first quarter of this year.

According to the "CPA Business Survey Index (CPA BSI)" announced by the Korean Institute of Certified Public Accountants on the 22nd, the CPA BSI for the first quarter of this year was 121. This survey was conducted among 250 partners of accounting firms and executive-level accountants in corporations.

The CPA BSI for the first quarter of this year recorded the highest level since June 2018. During the second quarter of last year, when the impact of COVID-19 continued, it recorded the lowest point at 30. Since then, it has shown continuous improvement with 57 in the third quarter and 75 in the fourth quarter. The BSI is an indicator that reflects the level of economic sentiment perceived by economic agents. A value above 100 is interpreted as the economy improving.

The Korean Institute of CPAs explained, "The perceived economy in the first quarter improved significantly due to favorable exports and base effects." However, since the BSI measures how much the economy has improved compared to the previous quarter, it tends to show a large rebound due to base effects during the economic recovery phase.

The CPA BSI forecast for the second quarter of this year also rose sharply to 131, compared to the first quarter forecast of 88. However, the Korean Institute of CPAs pointed out, "Since there are still uncertainties about domestic demand recovery due to recent signs of the fourth wave of COVID-19 and concerns over vaccine distribution delays, overly optimistic interpretations should be avoided."

By industry, the electronics industry (143) was evaluated to have improved due to increased demand for non-face-to-face related products. It was analyzed that the automobile industry (134) showed a remarkable improvement as automobile demand rapidly recovered. However, it was stated that in order for the recovery of the electronics and automobile industries to continue, measures to minimize the damage caused by the recent semiconductor shortage are required.

The Korean Institute of CPAs emphasized, "Although the business conditions of most industries have improved, it should be noted that recovery may be uneven across industries depending on the degree of non-face-to-face and digitalization," and suggested, "Active responses from each industry to the accelerated digital transformation and expansion of non-face-to-face activities triggered by COVID-19 are necessary."

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