South Korea avoids technical recession as GDP expands 0.6% in second quarter
View along the Hangang River in South Korea, Seoul.
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According to progress estimates, South Korea avoided a technical stagnation as its economy expanded 0.6% compared to the previous quarter.
This was higher than 0.5% expected by the economists who participated in the survey by Reuters, and reversed 0.2% contraction in the first quarter.
Compared to last year, the country’s GDP increased higher than 0.5% in the first quarter and a higher expansion of 0.4% expected by the Reuters survey.
Total consumption, which contains private and government expenditures, increased by 0.7% compared to the previous quarter, a stronger show than the 0.1% contraction in the first three months of the year.
Government expenditures increased by 1.2% in a quarter of the quarter, mostly strengthened with the increase in health benefits, while increasing 0.5% in the same period, special expenses, motor vehicles, increased expenditures to recreation and sports activities.
Data from Korean Bank It showed that both the exports of goods and services increased strongly in the second quarter and the shipments of semiconductors, petroleum products and chemical products increased by 4.2% in the quarter.
South Korea is currently trying to close a trade agreement with the United States, which fails to be hit with a tariff of 25% of the country’s exports to the United States from 1 August.
Exports of goods and services account for about 44% of South Korean GDP in 2023. Latest figures from World BankAs the largest export market in the USA.
South Korean Media Organization Yonhap Seoul reported that he ignored changes in the import of cattle and rice as a bargain chips in tariff negotiations with the US.
Although shit draws attention to a stable inflation rate and predicted low growth for the country and chose to focus on financial stability, it had proportions at the previous monetary policy meeting on July 10th.
Inflation in South Korea was 2.2% in June, slightly above Bok’s 2% target.
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