Even during a severe economic downturn,

Even during a severe economic downturn, consumption of essential goods is often steady. Usually, the decline in durable goods is large, but in fact, it does not account for a large portion of consumer spending.

Korea is ambiguous to say it is a serious economic downturn, but consumer spending is falling quite a bit, and unusually, quasi-durable goods are falling by 6% compared to the same month last year.

The media usually explains that high interest rates cause a lack of capacity to consume, but of course, the impact is likely to be significant. However, I feel strange about semi-durable goods that show a greater decline than durable goods. Could there be another cause?

2024 is the year that children born in 2017 will enter the first grade of elementary school. They do basic spending activities in kindergarten, but when they enter school, they will likely spend more on items such as bags and clothes and spend more on education. About 50,000 fewer children were born in 2017 than in 2016.

If there is not just a high interest rate effect, but also a demographic effect, I think that the decline in consumption spending may continue for a while in the future.