South Korea's economy grows to its fastest rate in 2 years
- Asian Market
- 5 months ago
South Korea’s economy has grown by 1.1%, its fastest rate in the last two years despite of the current trade skirmishes between the U.S. and China, along with its own spat with Japan.
However, the South Korean government implemented heavy spending to counter the global trade situation and due to that GDP increased by 2.1% compared to the same quarter in the previous year.
And although it is unclear if the recovery will continue to hold up, the economy would have surely contracted if the government did not intervene.
The first quarter of the year was its worst since the financial crisis, which also prompted the central bank of Korea to cut interest rates.
The BoK cut its policy rate by 25 basis points to 1.5% and slashed its growth target for this year to 2.2%, from its previous forecast of 2.5%.
Source: Smart Trend Team