Nature

POLL-South Korea’s economy probably lost some steam in the second quarter


Band Anant Chandak

BANGALURU, July 22 (Reuters)South Korea’s economic growth likely slowed a bit in the second quarter as falling exports and soaring import costs hurt private consumption which accounts for about half of the economy, according to a Reuters poll. .

Exports from Asia’s fourth-largest economy grew at their slowest pace in more than a year and a half in June as high inflation weighed on foreign demand for South Korean goods, widening the trade gap and fueling concerns about a global recession.

According to median forecasts from 14 economists, South Korea’s export-driven economy is expected to have grown 0.4% in the latest quarter, a slowdown from the 0.6% rise in the previous quarter.

On a yearly basis, gross domestic product (GDP) likely rose 2.5%, according to the median of 19 economists, down from 3.0% growth in the first quarter. The data will be released on July 26.

“High oil prices, a slowing Chinese economy, weak exports and lower plant investment are expected to have put pressure on growth,” said Park Sang-hyun, an economist at Hi Investment & Securities. .

The economy is expected to lose momentum in the coming year as policymakers tighten fiscal spending to keep the debt-to-GDP ratio in check. The debt ratio of South Korean households is among the highest in the world.

“Higher-than-expected inflation and faster-than-expected rate hikes raise the risk of slower growth in 2023. Due to rising debt service and rising costs of living, consumer confidence consumers began to deteriorate,” Ma Tieying said. , economist at DBS.

That, combined with an economic slowdown in China, the country’s biggest trading and investment partner, will weigh heavily on the economy. ECILT/CN

Growth is expected to average 2.5% this year, down sharply from last year’s 4.1%, according to a separate Reuters poll. It was then expected to fall further to 2.4% next year. KR/INT

(Reporting by Anant Chandak; Polling by Arsh Mogre; Editing by Ross Finley, Hari Kishan and Marguerita Choy)

(([email protected];))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


nasdaq

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button