Thanks to large-scale manufacturing, there is an increasing scope for China to take advantage of the global economy. Chinese products have started giving tough time to major economic powers in the US and Europe as well as in their neighbourhood.
South Korea’s exports in the sectors of advanced vehicles, cell phones and various electronics items are at risk.
Last year, South Korea saw its largest decline in manufacturing in 25 years.
Exports of South Korea’s semiconductors are also suffering due to the downturn in global markets.
South Korea’s exports are heavily dependent on the export of semiconductors.
South Korea does not have inflation like America and Europe, but the difficulties for the common man are increasing.
Declining output has forced the government to raise taxes, among other measures, to raise revenue.
The graph of industrial production has risen marginally over the past two months. Low inflation has given the people of South Korea some relief, but ensuring income growth has become a major challenge for both the government and the people.