The first-quarter GDP of South Korea slows on weak capex and exports
During the period of January-March, the GDP of South Korea surged 0.4%, according to the evaluation carried out by the country’s major bank. The results appears to be somewhat below analysts’ expectations.
The first quarter growth was supposed to be the slowest since the last year’s second quarter, because of weak exports and sagging capital investment. Financial experts expect a further slowdown during the second half of the year. Nevertheless, the second quarter is expected to improve, as the major bank might cut interest rates.
Indeed, most analysts expect the Bank of Korea to bring down rates soon in order to boost economic growth, which might take place a bit later than expected. It’s because the major bank is going to examine the fallout from its everlasting structural reform.
By the way, a year earlier, South Korea’s national economy managed to expand up to 2.7% in the March quarter. The given outcome actually matched a median 2.7% prediction of the Reuters survey.