S. Korean economy shrinks 1.4% q/q in Q1; sharpest decline since 2008 global financial crisis
- 4 years ago
'코로나 충격' 1분기 성장률 -1.4%, 11년 만에 최저...홍남기 "2분기 실물•고용충격 확대 우려"
South Korea's economy just recorded its most severe contraction since the 2008 financial crisis as the coronavirus pandemic weighed on consumer demand and exports.
A one-point-four percent contraction in the Januarty to March period compared to the fourth quarter of 2019.
And the worst may not be over.
Yoon Jung-min reports. South Korea's economy has suffered its biggest drop in over 11 years,... a hit not seen since the fourth quarter of 2008... when the world economy was reeling from the global financial crisis.
The Bank of Korea revealed Thursday that South Korea's preliminary first quarter GDP growth was down 1-point-4 percent from the previous quarter.
On-year, the country's GDP edged up 1-point-3 percent, but that's also the lowest growth in around a decade.
Private consumption fell 6-point-4 percent,... as goods and services were hammered by the COVID-19 outbreak.
Growth for South Korea's wholesale, retail, food and accommodation sectors fell over 6 percent,... while transportation plunged over 12 percent.
"The contribution of domestic consumption to growth turned sharply negative. Its contribution plunged to minus 2 percentage points from the previous quarter's 1-point-4 percentage points."
Construction investment expanded 1-point-3 percent,... while facilities investment was up point-2 percent.
South Korea's exports were down 2 percent,... due mainly to lower shipments of automobiles, machinery and chemical products.
However, semiconductor exports were up.
Imports dropped over 4 percent,... due mostly to cheaper oil and fewer imported cars coming into the country.
South Korea's economic difficulties can be seen in Fitch Ratings' GDP growth projections for this year, which have been lowered from minus point-2 percent to the new projection of minus 1-point-2 percent.
"Even optimists expect this year's growth to be similar to the level seen during the 2008 global financial crisis,... while pessimists expect the growth to be as low as during the Asian financial crisis."
On the same day, South Korea's Finance Minister Hong Nam-ki said there's a rising possibility the real economy and job market experience shocks during and after the second quarter due to the worsening global recession.
"The finance ministry will focus on boosting South Korea's job numbers in April and May. Then in June, the government will announce its economic policies for the second half of the year.
Yoon Jung-min, Arirang News."
South Korea's economy just recorded its most severe contraction since the 2008 financial crisis as the coronavirus pandemic weighed on consumer demand and exports.
A one-point-four percent contraction in the Januarty to March period compared to the fourth quarter of 2019.
And the worst may not be over.
Yoon Jung-min reports. South Korea's economy has suffered its biggest drop in over 11 years,... a hit not seen since the fourth quarter of 2008... when the world economy was reeling from the global financial crisis.
The Bank of Korea revealed Thursday that South Korea's preliminary first quarter GDP growth was down 1-point-4 percent from the previous quarter.
On-year, the country's GDP edged up 1-point-3 percent, but that's also the lowest growth in around a decade.
Private consumption fell 6-point-4 percent,... as goods and services were hammered by the COVID-19 outbreak.
Growth for South Korea's wholesale, retail, food and accommodation sectors fell over 6 percent,... while transportation plunged over 12 percent.
"The contribution of domestic consumption to growth turned sharply negative. Its contribution plunged to minus 2 percentage points from the previous quarter's 1-point-4 percentage points."
Construction investment expanded 1-point-3 percent,... while facilities investment was up point-2 percent.
South Korea's exports were down 2 percent,... due mainly to lower shipments of automobiles, machinery and chemical products.
However, semiconductor exports were up.
Imports dropped over 4 percent,... due mostly to cheaper oil and fewer imported cars coming into the country.
South Korea's economic difficulties can be seen in Fitch Ratings' GDP growth projections for this year, which have been lowered from minus point-2 percent to the new projection of minus 1-point-2 percent.
"Even optimists expect this year's growth to be similar to the level seen during the 2008 global financial crisis,... while pessimists expect the growth to be as low as during the Asian financial crisis."
On the same day, South Korea's Finance Minister Hong Nam-ki said there's a rising possibility the real economy and job market experience shocks during and after the second quarter due to the worsening global recession.
"The finance ministry will focus on boosting South Korea's job numbers in April and May. Then in June, the government will announce its economic policies for the second half of the year.
Yoon Jung-min, Arirang News."