in South Korea have slipped into negative territory, stoking fears of deflation and negative growth in a country that is struggling more than many amidst the global economic slowdown.
According to the Korean Statistics Office
, prices decreased by 0.4 percent in September (compared to the previous year). It is the first time on record
that the country, a longtime economic powerhouse, has exhibited negative price growth. Global economic turmoil disproportionally affects South Korea’s strong export sector (which exists mainly due to its large tech economy). The country’s exports (and prices) suffering is seen by many observers as a signal of more gloom ahead for global growth.
Despite central banks in different countries providing stimuli, global demand for products is hardly increasing, weighing down on export nations. Especially dwindling orders from China are affecting industries in South Korea and all over the world.