Cost of living is 2022's most important economic issue: Seoul residents

Seoul: Residents of Seoul have cited cost of living as the most important economic issue of 2022, a survey revealed on Monday.

According to the survey on 1,200 households in the South Korean capital conducted by the Seoul Institute, 19.2 per cent of the respondents said the cost of living is the top economic issue next year, reports Yonhap News Agency.

Another 17.3 per cent cited youth unemployment and job creation, followed by mortgage loans and increasing household debts at 9.8 per cent, the result of the 2022 presidential election at 8.3 per cent, income polarisation at 6.1 per cent, and consumer sentiment and domestic business conditions at 5.7 per cent.

Asked whether the economy will improve next year, respondents said they expect the economy to get worse in all sectors.

Respondents said the Covid-19 pandemic will likely have a bigger impact on the economy, and business conditions for small merchants, the stock market, youth unemployment, household income and consumer sentiment will worsen.

The survey also showed that Seoul's consumer sentiment index (CSI) came in at 95.3 in the fourth quarter, up 2.1 points from the previous quarter, showing an upward trend for the third consecutive quarter.

A reading above 100 means optimists outnumber pessimists.

"CSI came near the standard of 100 in the fourth quarter with expectations of overcoming the pandemic and returning to normalcy, but there are numerous issues that can affect (the consumer sentiment), including the emergence of Covid-19 variants, the possibility of a fifth wave of infections and economic uncertainties," the institute said.