South Korea’s economy retreated in the second quarter of the year amid weaker domestic demand, while exports remained solid.
The country’s real gross domestic product, a key measure of economic growth, contracted 0.2 percent on-quarter in the April-June period, matching an earlier estimate, according to preliminary data from the Bank of Korea (BOK).
The second-quarter figure compares with the 1.3 percent on-quarter expansion in the January-March period, which marked the highest since the fourth quarter in 2021, when the economy expanded 1.4 percent.
On a yearly basis, South Korea’s economy advanced 2.3 percent in the second quarter, slowing from 3.3 percent growth for the first quarter of the year, according to South Korea’s News Agency (Yonhap).
The country’s exports climbed 1.2 percent in the second quarter, slowing from the previous quarter’s 1.8 percent gain, while imports rose 1.6 percent, shifting from a 0.4 percent dip the previous quarter.
Last month, the central bank held its key interest rate s
teady at 3.5 percent for the 12th straight time amid moderating inflation and high household debt.
South Korea’s economic growth slowed to the lowest in three years last year due to a slump in exports amid tightening monetary policies around the globe.
The economy expanded 1.4 percent last year, slowing from a 2.6 percent advance in 2022 and 4.3 percent growth in 2021.
For the year, the bank expects the economy to rebound slightly, at 2.4 percent, slower than its earlier estimate of 2.5 percent.
Source: Qatar News Agency