|Signs of Deep Recession in South Korea|
|by Tom McGregor||Fri, Oct 24, 2014, 02:28 AM|
An alarming trend of a severe slump of money circulation in South Korea is pointing to signs of a deep recessionary economy in the nation.
The Chosun ilbo reports that, "The circulation of money has slowed considerably despite the Bank of Korea frantically printing more, raising fears of a deep recession. The Chosun Ilbo analyzed data in conjunction with the Financial Supervisory Service and LG Economic Research Institute on Tuesday and found that the Korean economy is in worse shape than the Japanese when it entered a prolonged slump in the early 1990s."
A slump in money circulation spells doom for investments and consumer spending in South Korea.
According to the Chosun Ilbo. "The speed of currency circulation in Korea as of the second quarter this year stood at 0.74, slower than the 0.95 Japan experienced in 1992 as it entered a decade-long deflationary period. The average speed of currency circulation in Korea over the last 25 years has been 1.9."
A recession in South Korea could drag economies in the Asia-Pacific region.
To read the entire article from the Chosun Ilbo, link here: