South Korea’s GDP shrank by 0.3% in the first quarter from the previous quarter

Posted by Emvertex

South Korea’s gross domestic product unexpectedly shrank 0.3 percent in the first quarter from the previous quarter, its worst quarter in a decade, led by falling investment, a weaker technology sector and falling exports. Economists polled by Reuters did not expect the south Korean economy to contract, with the median forecast for a modest 0.3 percent growth.

GDP grew at an annualised rate of just 1.8 per cent in the first quarter, below expectations of 2.5 per cent.

Exports, which account for about half of South Korea’s GDP, have fallen for the fifth month in a row. Exports fell by 2.6% in the first quarter compared with the fourth quarter of last year.

South Korea’s central bank last week cut its forecast for economic growth this year to 2.5%. The government expanded spending plans and announced a supplementary budget this week to support the economy.