S. Korea's GDP contracts 0.3% q/q in Q1
- 5 years ago
South Korea's central bank has released its data on real GDP growth for the first quarter, and it does NOT paint a pretty picture.
For more details, we connect to our business correspondent Kim Hyesung who is at the Bank of Korea.
Hyesung, we've known the economy has been in the doldrums for a while, but this is one of the worst figures we've seen in years....
Mark, South Korea's economy actually SHRANK in the first quarter, declining zero-point-three percent on-quarter.
This is the worst contraction since the height of the global financial crisis, when the South Korean economy sank three-point-three percent in the fourth quarter of 2008.
On-year, first quarter real GDP expanded one-point-eight percent.
This shows government spending failed to keep up the previous quarter’s strong pace of one percent amid falling exports and as companies slashed investment.
Exports tumbled two-point-six percent on-quarter, a sharper drop than the one-point-five percent decline in the fourth quarter of last year...mainly on decreases in exports of electrical and electronic equipment like LCDs.
Government consumption edged up zero-point-three percent, with increased health care benefits, but that's still the lowest in about 16 quarters.
Capital investment plummeted nearly 11 percent to a 21-year-low due to decreases in machinery and transportation equipment.
Construction investment edged down zero-point-one percent.
This contraction in GDP growth came as quite a shock to the market, as most economists had expected a slight rise.
Led by finance minister Hong Nam-ki, economy-related ministers including the trade minister and labor minister, are holding a meeting at the government complex to assess the GDP numbers and come up with measures.
That's all I have for now, back to you, Mark.
For more details, we connect to our business correspondent Kim Hyesung who is at the Bank of Korea.
Hyesung, we've known the economy has been in the doldrums for a while, but this is one of the worst figures we've seen in years....
Mark, South Korea's economy actually SHRANK in the first quarter, declining zero-point-three percent on-quarter.
This is the worst contraction since the height of the global financial crisis, when the South Korean economy sank three-point-three percent in the fourth quarter of 2008.
On-year, first quarter real GDP expanded one-point-eight percent.
This shows government spending failed to keep up the previous quarter’s strong pace of one percent amid falling exports and as companies slashed investment.
Exports tumbled two-point-six percent on-quarter, a sharper drop than the one-point-five percent decline in the fourth quarter of last year...mainly on decreases in exports of electrical and electronic equipment like LCDs.
Government consumption edged up zero-point-three percent, with increased health care benefits, but that's still the lowest in about 16 quarters.
Capital investment plummeted nearly 11 percent to a 21-year-low due to decreases in machinery and transportation equipment.
Construction investment edged down zero-point-one percent.
This contraction in GDP growth came as quite a shock to the market, as most economists had expected a slight rise.
Led by finance minister Hong Nam-ki, economy-related ministers including the trade minister and labor minister, are holding a meeting at the government complex to assess the GDP numbers and come up with measures.
That's all I have for now, back to you, Mark.