Korea Economic Outlook
May 21, 2019The economy had a sluggish start to the year. In the first quarter, output grew at the slowest pace since the financial crisis, on the back of a fall in fixed investment. Particularly, business investment plunged owing to weakness in the semiconductor industry. Government consumption, however, grew robustly and the external sector contributed the most to economic growth in six years, although only thanks to lower imports. More recently, the economy has showed tentative signs of a small rebound in Q2: In April, the manufacturing sector narrowly expanded for the first time in six months and consumers became optimistic about economic conditions for the first time in seven months. Merchandise exports, however, fell for the fifth month running in April. Meanwhile, in the political arena, the government unveiled USD 5.9 billion in extra spending measures on 23 April, which should slightly lift growth later this year.
Korea Economic GrowthThe economy is seen flagging slightly this year due to weaker job creation and rising household debt stunting private consumption growth. Moreover, fixed investment will likely continue to fall and global trade tensions will undermine the external sector. On the other hand, significantly higher government spending will support the economy. FocusEconomics panelists forecast the economy will grow 2.3% in 2019, which is down 0.2 percentage points from last month’s forecast, and 2.4% in 2020.
Korea Economy Data
5 years of Korea economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.59||1.55 %||Jun 14|
|Exchange Rate||1,185||0.21 %||Jun 14|
|Stock Market||2,095||-0.40 %||Jun 14|
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Korea Economic News
June 4, 2019
Consumer prices rose 0.2% in month-on-month terms in May, down from the 0.4% increase recorded in April.
June 3, 2019
The Nikkei and IHS Markit manufacturing Purchasing Managers’ Index (PMI) fell to 48.4 in May from 50.2 in April, dashing hopes of a revival in the manufacturing sector—April’s 50.2 reading had marked the first time in four months that the PMI had landed above the 50-point threshold that separates contraction from expansion in the manufacturing sector.
June 3, 2019
According to a second GDP release, the economy grew 1.7% in the first quarter compared to the same quarter a year earlier, down from the 1.8% previously reported and the 2.9% growth logged in the fourth quarter of last year.
June 1, 2019
Merchandise exports fell 9.4% over the same month a year earlier in May to total USD 45.9 billion, worsening from the 2.0% contraction in April.
May 31, 2019
Industrial production in the mining, manufacturing, and gas and electricity sectors fell 0.1% in annual terms in April, following the 2.3% decrease logged in March.