In January, the three major economic indicators—production, consumption, and investment—all recorded negative growth rates. This marks a downturn after briefly achieving positive growth in December following negative figures in November of the previous year. Industrial production fell by 2.7%, with declines noted in mining, construction, and service sectors. Retail sales dropped by 0.6%, influenced by reduced sales in semi-durable goods like clothing and footwear, and a marked 41% decrease in duty-free sales due to reduced demand from China.
Facility investment plummeted by 14.2%, the largest drop since the early days of the COVID-19 pandemic in 2020, continuing a trend of decreasing investment driven by the significant drop in semiconductor machinery investments and a reduction in transportation equipment investment.
The statistics released reflect economic uncertainty both domestically and internationally, leading to subdued consumer and construction investment recoveries. The construction sector, heavily impacted by a sustained downturn, showed a 4.3% decline in performance, the largest since March of the previous year.
Overall, the cyclical component of the coincident index fell by 0.4 points, while the leading index, which forecasts future economic trends, decreased by 0.3 points due to reduced machinery orders and construction contracts.
In response to these developments, the government announced plans to bolster domestic demand and support exports amidst increasing uncertainties. This includes introducing new measures such as export vouchers to counteract U.S. tariffs and setting up advanced strategic industry funds to enhance industrial competitiveness.