South Korea GDP grows 0.7% in Q2

South Korea GDP grows 0.7% in Q2


The nation’s central bank released its preliminary
estimates for second quarter expansion. It slowed down from Q1, mainly due to weaker
investment and export growth. Plus there’s the uncertainty factor stemming
from the trade battles. Kim Hyesung breaks down the digits for us. South Korea’s GDP grew in the second quarter
by zero-point-seven percent from the previous quarter. The Bank of Korea says the country’s GDP expanded
by 398 trillion Korean won, or about 356 billion U.S. dollars between April and June. It marks a slowdown from the first quarter’s
one-percent rise…mainly due to weaker investment and export growth. Investment in business facilities contracted
by six-point-six percent after growing over three percent the quarter before, mainly due
to a cut in investment in both machinery and transportation equipment. Construction investment also turned to a negative
one-point-three percent, after gaining 1-point-8percent in the first quarter. “Construction investment went down as the
government’s housing market regulations went into effect. Facilities investment dropped mainly due to
a base effect. Investment in displays and equipments are
now going down, and this is likely to continue as global uncertainties like trade affect
investment sentiment.” Growth in exports, a major driver of Korea’s
economy, also slowed to zero-point-eight percent,… down from four percent in the first quarter. Imports fell 2-point-6 percent due to cuts
in imports of machinery and transportation equipment. On the expenditure side, private consumption
increased by zero-point-three percent on-quarter, logging the slowest growth in six quarters. Government consumption also grew by zero-point-three
percent on-quarter. The second quarter growth figures mark a slight
slow down from the first quarter. But on-year, the local economy grew by two-point-nine
percent. “The Bank of Korea says second quarter growth
is in line with its projections and that if the third quarter and fourth quarters have
between zero-point 82 and zero-point-94 percent growth rates, Korea’s GDP growth for 2018
will hit the Bank’s forecast of 2-point-9 percent. But it said it will have to keep a close watch
on the ongoing global trade uncertanties. Kim Hyesung, Arirang News.”

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