English | دری

South Korea's Growth Slower in Second Quarter

in International Business

South Korea's Growth Slower in Second Quarter

A fall in capital investment and a slowdown in exports have caused South Korea’s economy to grow at a slower pace than previously expected.

Growth for the second quarter was 2.3 per cent, missing the central bank’s estimate of 2.4 per cent, and lower than the 2.8 per cent gain in the first quarter.

The economy expanded by 0.3 per cent compared with the previous quarter, slightly worse than previously estimated and down from a 0.9 per cent rise in the first quarter.

The weak data may prompt government to boost stimulus measures.

“The possibility that the simultaneous weakness in exports and domestic demand will continue in the third quarter is leading to expectations for a rate cut next week,” said Lee Sang-jae, an economist at Hyundai Securities.

South Korea’s economy, heavily reliant on exports because domestic demand is also strongly influenced by overseas sales of its products, has been hit hard as the debt crisis in the euro zone dragged demand from around the world.

Related Articles

Iran crisis: US to apply fresh oil sanctions

US President Barack Obama has approved the introduction of fresh sanctions on buyers of Iranian oil. In a statement, Mr

The Eurozone helps Greece avoid bankruptcy— for now

A deal was struck on Friday in Brussels that would give the Greek government four more months to avoid bankruptcy while

China's economy slows down further

Data for April shows sharper than expected declines in investment and industrial production. China’s economy is slowing down further, national

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.