S. Korea's GDP shrinks 0.4% in Q1, worse than previous estimate
- 5 years ago
1분기 성장률 -0.4%...10년 만에 최저
More discouraging numbers for the already struggling South Korean economy.
The nation's GDP shrank in the first quarter... by the biggest amount since the 2008 financial crisis.
Kim Hyesung breaks down the digits for us.
South Korea's GDP shrank zero-point-four percent in the January to March period compared to the previous quarter.
That's point one percent lower than the Bank of Korea's previous estimate released in April.
It's also the largest fall since the fourth quarter of 2008.
On-year, Korea's GDP grew 1-point-seven percent.
The central bank said construction investment and exports fared worse than estimated.
Local exports plunged more than three percent on a drop in shipments of semiconductors and LCDs amid on-going U.S.-China trade tensions and slowing global demand.
According to an OECD report, South Korea's exports saw the sharpest drop among the G20 countries, recording 139 billion U.S. dollars of exports in the first quarter, down seven percent on-quarter.
"Exports account for about half of Korea's GDP. Falling chip prices led to a drop in export in recent months. Negative quarterly growth in itself is not a crisis. We saw that in 2017 too. But the problem is it hurts sentiment. That could lower corporate investment which in turn hurts the real economy. And the chip sector is unlikely to make a turnaround soon."
Construction investment shrank zero-point-eight percent as investment in residential building construction decreased.
Facilities investment dropped nine percent, driven by decreases in machinery and transportation equipment... the sharpest fall in about a decade.
Private consumption went up slightly by point-one percent, and government consumption increased point-four percent on increased healthcare benefits.
Real gross national income fell by zero-point-three percent on-quarter to 383 billion dollars.
The Bank of Korea said to reach its growth target of two-point-five percent, the local economy will have to expand around 1-point-three percent in the second quarter, and zero-point-nine percent each for the remaining two quarters.
Kim Hyesung, Arirang News.
More discouraging numbers for the already struggling South Korean economy.
The nation's GDP shrank in the first quarter... by the biggest amount since the 2008 financial crisis.
Kim Hyesung breaks down the digits for us.
South Korea's GDP shrank zero-point-four percent in the January to March period compared to the previous quarter.
That's point one percent lower than the Bank of Korea's previous estimate released in April.
It's also the largest fall since the fourth quarter of 2008.
On-year, Korea's GDP grew 1-point-seven percent.
The central bank said construction investment and exports fared worse than estimated.
Local exports plunged more than three percent on a drop in shipments of semiconductors and LCDs amid on-going U.S.-China trade tensions and slowing global demand.
According to an OECD report, South Korea's exports saw the sharpest drop among the G20 countries, recording 139 billion U.S. dollars of exports in the first quarter, down seven percent on-quarter.
"Exports account for about half of Korea's GDP. Falling chip prices led to a drop in export in recent months. Negative quarterly growth in itself is not a crisis. We saw that in 2017 too. But the problem is it hurts sentiment. That could lower corporate investment which in turn hurts the real economy. And the chip sector is unlikely to make a turnaround soon."
Construction investment shrank zero-point-eight percent as investment in residential building construction decreased.
Facilities investment dropped nine percent, driven by decreases in machinery and transportation equipment... the sharpest fall in about a decade.
Private consumption went up slightly by point-one percent, and government consumption increased point-four percent on increased healthcare benefits.
Real gross national income fell by zero-point-three percent on-quarter to 383 billion dollars.
The Bank of Korea said to reach its growth target of two-point-five percent, the local economy will have to expand around 1-point-three percent in the second quarter, and zero-point-nine percent each for the remaining two quarters.
Kim Hyesung, Arirang News.