South Korean economy shrinks to its worst since 2008
- Asian Market
- 7 months ago
South Korea’s economy has retreated unexpectedly resulting in a 0.3% contraction and its worst performance since the global financial crisis in 2008.
Exports are heading for a fifth straight decline for Asia’s fourth-largest economy, falling by 2.6% quarter-on-quarter, a much steeper decline than the 1.5% in the previous three months, however private consumption managed to gain 0.1% due to a rise in demands for durable goods.
South Korea’s troubles are a warning to other countries which rely heavily on exports, especially when the current trade war between Washington and Beijing is taking its toll on shipments.
The Bank of Korea released a statement in which it pointed to the apparent difficulties the Government has had of late.
“Government spending failed to keep up the bumper boost of the fourth quarter, especially for construction investment, while a drop in business investment was worse than expected due to a downturn in the chips sector.”
Source: Smart Trend Team