S. Korean economy grows 1.1 pct on-quarter in Q2: BOK
- 5 years ago
2분기 성장률, 7분기 만에 최고치…"재정지출 효과"
South Korea's economy is estimated to have grown 1-point-1 percent in the second quarter of this year.
This is a dramatic turnaround from the previous quarter when GDP shrank by the largest amount since the 2008 financial crisis.
Our Kim Da-mi reports.
South Korea's GDP grew by an estimated 1-point-1 percent in the April-to-June period.
According to Bank of Korea, the figure marks the highest on-quarter growth since the third quarter of 2017...when the economy grew 1-point-5 percent.
The country's economy grew at an annualized rate of 2-point-1 percent in the second quarter, also marking the highest growth since the final quarter of 2018.
But it's not all good news because the previous quarter's figure was so low...and also because the growth was largely thanks to the government's increased spending.
"The growth was partly caused by the government's increased spending on health care benefits. Government spending increased by 2-point-5 percent, which is a huge jump from the zero-point-4 percent increase in the previous quarter."
Exports in the second quarter increased 2-point-3 percent from three months earlier... thanks to increased exports of motor vehicles and semiconductors.
Imports also went up by 3 percent, owing to increased imports of machinery.
Facilities investment grew by 2-point-4 percent, led by the growth of investment in transportation equipment.
Private consumption also picked up pace, growing point-7 percent with increased expenditures on clothing and medical services.
"Even though the GDP growth rebounded to a positive number, the data doesn't show good signs for the country's economy. Both exports and facility investment actually dropped compared to the same period last year."
Real gross domestic income, or GDI, decreased by point-6 percent compared to the previous quarter because of the worsened trade terms.
With exports on a steady decline since December and the electronics industry facing Japan's export restrictions,... analysts note that it will be a challenge to reach the central bank's economic growth forecast of 2-point-2 percent.
"South Korea's GDP needs to be above point-8 percent in the third and final quarters of the year in order to reach the central bank's economic growth forecast.
While the Bank of Korea says it's too early to comment on the country's economic growth, it says it will carefully monitor the U.S.-China trade war, as well as Japan's latest export curbs.
KIM Da-mi, Arirang News."
South Korea's economy is estimated to have grown 1-point-1 percent in the second quarter of this year.
This is a dramatic turnaround from the previous quarter when GDP shrank by the largest amount since the 2008 financial crisis.
Our Kim Da-mi reports.
South Korea's GDP grew by an estimated 1-point-1 percent in the April-to-June period.
According to Bank of Korea, the figure marks the highest on-quarter growth since the third quarter of 2017...when the economy grew 1-point-5 percent.
The country's economy grew at an annualized rate of 2-point-1 percent in the second quarter, also marking the highest growth since the final quarter of 2018.
But it's not all good news because the previous quarter's figure was so low...and also because the growth was largely thanks to the government's increased spending.
"The growth was partly caused by the government's increased spending on health care benefits. Government spending increased by 2-point-5 percent, which is a huge jump from the zero-point-4 percent increase in the previous quarter."
Exports in the second quarter increased 2-point-3 percent from three months earlier... thanks to increased exports of motor vehicles and semiconductors.
Imports also went up by 3 percent, owing to increased imports of machinery.
Facilities investment grew by 2-point-4 percent, led by the growth of investment in transportation equipment.
Private consumption also picked up pace, growing point-7 percent with increased expenditures on clothing and medical services.
"Even though the GDP growth rebounded to a positive number, the data doesn't show good signs for the country's economy. Both exports and facility investment actually dropped compared to the same period last year."
Real gross domestic income, or GDI, decreased by point-6 percent compared to the previous quarter because of the worsened trade terms.
With exports on a steady decline since December and the electronics industry facing Japan's export restrictions,... analysts note that it will be a challenge to reach the central bank's economic growth forecast of 2-point-2 percent.
"South Korea's GDP needs to be above point-8 percent in the third and final quarters of the year in order to reach the central bank's economic growth forecast.
While the Bank of Korea says it's too early to comment on the country's economic growth, it says it will carefully monitor the U.S.-China trade war, as well as Japan's latest export curbs.
KIM Da-mi, Arirang News."