Ever－declining oil prices and its impact on economy.2

급락하는 국제유가-2 We′ve known that for Korea，… being an export driven economy， and with a number of the country′s leading export sectors heavily reliant on the price of oil，… it′s always better to keep the oil price cheap. But I hear it′s not the case this time？ I don′t see why we， here in Korea， should be worried at all in the immediate－term sliding crude oil prices give consumers relief at the pump， which is bound to provide a fillip for consumer spending. That′s what we need so dearly at this point， is it not？ Right， from the consumers′ point of view，… cheaper oil means cheaper gas price，… and it also means improved domestic economy. It′s a simple equation. If the global oil price falls，… then the production costs of local firms also drops. Then that will boost the competitiveness in the global market，… improving the local economy， on the back of prospering local firms. But experts say that equation isn′t corresponding with the current global economy. ″There isn′t enough demand， globally. So even if there is enough production for all，… the demand isn′t as strong as it used to be，... leaving many companies′ warehouses stocked with low purchasing power，… leading to the firms′ losses.″ It′s also the slowdown in China′s economy as well as slower growth in other emerging countries， that have contributed to make demand almost non－existent. Visit ‘Arirang News’ Official Facebook Page https://www.facebook.com/newsarirang