The country’s weak GDP print is expected to put pressure on the central bank to pivot toward policy easing to spur growth in the economy. PHOTO: SEONGJOON CHO/BLOOMBERG NEWSSouth Korea’s economy slowed at a sharper-than-expected pace in the second quarter on sluggish private consumption and weak business investments, losing steam after a solid recovery in the previous quarter. On a quarter-on-quarter basis, the economy shrank 0.2% following the first quarter’s 1.3% expansion, according to the central bank. Exports maintained steady growth on external demand during the second quarter, but private consumption and construction investment returned to contraction for the period, the central bank data showed. The bank expects South Korea’s economy to grow 2.5% this year following 1.4% growth in 2023.

Source: Wall Street Journal July 26, 2024 02:11 UTC