GDP in Korea
Korea - GDP (billions of U.S. Dollars)
Preliminary estimate shows economy contracting at fastest pace since 2008 in Q2
A preliminary GDP release by the Bank of Korea shows the economy shrank 3.2% in seasonally-adjusted quarter-on-quarter (s.a. qoq) terms in Q2, following Q1’s 1.3% contraction, as the pandemic halted global trade, thereby hitting the key export sector hard. The print marks the sharpest contraction since Q4 2008. Moreover, the economy contracted 2.7% in annual terms in Q2, contrasting Q1’s 1.4% increase.
On the domestic front, the economy rebounded from the previous quarter, with private consumption growing 1.5% in Q2 (Q1: -6.5% s.a. qoq) as the virus was brought swiftly under control. Government consumption was up 1.1%, a slight deceleration from Q1’s 1.4% growth, but still marking a solid expansion amid stimulus measures. However, fixed investment lost ground on pervasive uncertainty, falling 0.4% in Q2, after having expanded 0.5% in Q1.
Exports of goods and services plunged 16.1% in Q2, significantly down from Q1’s 1.4% fall. Moreover, imports contracted 6.7%, which was down from Q1’s 3.6% decline.
Commenting on the outlook, Lloyd Chan, economist at Oxford Economics, noted:
“We expect the economy to rebound modestly in H2 2020, supported by a coordinated monetary and fiscal response, while the upturn in China’s economy should promote an export pick-up. But the recovery may be uneven without a vaccine. […] Renewed escalation of US-China tensions and South Korea’s trade dispute with Japan could pose further downside risks to growth.”
FocusEconomics panelists see the economy contracting 0.9% in 2020, which is down 0.1 percentage points from last month’s forecast, before growing 3.2% in 2021.
Korea - GDP (USD bn) Data
|GDP (USD bn)||1,465||1,500||1,624||1,725||1,646|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||1.68||1.55 %||Dec 31|
|Exchange Rate||1,156||0.21 %||Dec 31|
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October 14, 2020
At its meeting on 14 October, the Bank of Korea (BOK) kept the base rate at its record low of 0.50%, in line with market expectations. The Bank’s decision to hold came amid weak activity and a deteriorating labor market.
October 6, 2020
Consumer prices increased 0.66% in September over the previous month, slightly up from the 0.61% increase recorded in August.
October 5, 2020
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose to 49.8 in September from August’s 48.5, bordering the 50-threshold that separates an improvement from a deterioration in the manufacturing sector over the previous month. The print came as output grew for the first time in seven months.
October 1, 2020
Merchandise exports rose 7.7% in annual terms in September, rebounding from August’s 10.1% decline, amid an increasing demand for IT products due to the pandemic boosting home working.
September 29, 2020
Business confidence in the manufacturing sector was unchanged at September's 68.0 in October.