Cost of living top economic issue next year in Seoul: survey

The cost of living was cited as the most important economic issue of 2022 by Seoul citizens, a survey showed Monday.

According to the survey on 1,200 households in the capital by the Seoul Institute, 19.2 percent of the respondents said the cost of living is the top economic issue next year.

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

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.

An index showing people's real estate purchase sentiment, however, fell by 1.3 points to 56.7 in the fourth quarter, with the tally dropping the most among households with a yearly income of less than 24 million won ($20,220). Those between 36 million won and 48 million won came next, followed by those between 24 million won and 36 million won.

The employment outlook index stood at 85.6, up 9.6 points from the third quarter.

"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. (Yonhap)