Accountants Say "Economic Conditions Worsen in Q4 This Year"... Outlook for Next Year Also Gloomy

Photo by Korean Institute of Certified Public Accountants

[Asia Economy Reporter Lee Jung-yoon] The economic outlook for the fourth quarter of this year, as seen by certified public accountants (CPAs), has been revealed to be the worst since the third quarter of 2020.

The Korean Institute of Certified Public Accountants announced on the 28th the CPA Business Survey Index (CPA BSI) for the fourth quarter. According to the CPA BSI survey results, the economic status BSI for the fourth quarter of this year recorded 60. This is the lowest since the third quarter of 2020 and remains below the baseline of 100 since the second quarter of this year. The outlook for the first quarter of next year is 58, the lowest level since the second quarter of 2020 when COVID-19 began to spread in earnest.

The survey was conducted among CPAs with expertise and experience in the overall economy and industry. The BSI uses 100 as the baseline; a value above 100 indicates economic improvement, while below 100 indicates economic deterioration.

The major detailed factors expected to affect the domestic economy next year were identified as ▲direction of monetary policy and changes in financing environment (31%), ▲global economic trends (27%), and ▲raw material prices and inflation (22%).

By industry, most sectors showed a noticeable decline in both current status and outlook BSI, falling below the baseline of 100, indicating a continued perception of economic downturn.

Industry-specific current status BSI recorded 73 for information and communication, down 36 points from the previous quarter; 73 for food and beverages, down 29 points; 79 for distribution, down 25 points; and 73 for finance, down 24 points, with most industries falling below 100. Industry-specific outlook BSI showed a gloomy forecast with food and beverages down 28 points to 60, textiles and apparel down 28 points to 67, information and communication down 30 points to 76, and automobiles down 17 points to 91 compared to the previous quarter.

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