ID :
52512
Fri, 03/27/2009 - 13:36
Auther :
Shortlink :
https://www.oananews.org//node/52512
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S. Korean economy shrinks 5.1 pct in Q4
By Kim Soo-yeon
SEOUL, March 27 (Yonhap) -- The South Korean economy shrank a revised 5.1 percent
last quarter from three months ago, better than an earlier estimate of 5.6
percent, but exports tumbled amid sluggish domestic demand, the central bank said
Friday.
The country's gross domestic product (GDP) contracted 3.4 percent from a year
earlier in the October-December period, the same pace as the previous prediction,
according to a report by the Bank of Korea (BOK). The base year for revised GDP
figures was changed to 2005 from 2000.
The fourth-quarter figure marked the worst drop since the first quarter of 1998
when the nation's GDP, the broadest measure of economic performance, fell 7.8
percent on-quarter in the aftermath of the Asian financial crisis.
For all of 2008, Asia's fourth-largest economy grew a revised 2.2 percent, down
from an earlier 2.5 percent estimate. In 2007, the economy expanded 5.1 percent.
The report comes three days after the government unveiled a 28.9 trillion won
(US$21.6 billion) extra budget, the biggest ever, aimed at creating more jobs and
jump-starting the sputtering economy. Of the total, it set aside 17.7 trillion
won for fiscal spending.
Exports of goods, which account for about 60 percent of the local economy,
plunged 12.6 percent on-quarter in the fourth quarter, sharper than a previous
estimate of an 11.9 percent decline.
Private spending, one of the main growth engines of the South Korean economy,
fell 4.6 percent, compared with the 4.8 percent contraction previously estimated.
Facility investment tumbled 14.2 percent, compared with an earlier estimate of a
16.1 percent tumble while construction investment fell 3 percent, less than an
estimate of a 4 percent contraction.
The government and the central bank are making efforts to cushion the impact of
the global recession and the financial rout on the Korean economy by unveiling
stimulus packages and cutting the key interest rate. The Korean economy is widely
expected to post negative growth this year with Finance Minister Yoon Jeung-hyun
predicting a 2 percent contraction.
Yoon said on Tuesday that the additional spending, coupled with deregulation and
more corporate investment, could raise the country's GDP by 2 percentage points
and create 550,000 new jobs this year.
In March, the BOK froze the rate after six consecutive rate cuts to gauge the
effects of reductions on the economy and brace for a deeper economic downturn.
Between October and February, the central bank slashed the rate by a total of
3.25 percentage points.
Although the BOK stood pat on the rate for March, many experts said its monetary
easing steps will likely continue for the next few months, given the slumping
economy.
sooyeon@yna.co.kr
(END)
SEOUL, March 27 (Yonhap) -- The South Korean economy shrank a revised 5.1 percent
last quarter from three months ago, better than an earlier estimate of 5.6
percent, but exports tumbled amid sluggish domestic demand, the central bank said
Friday.
The country's gross domestic product (GDP) contracted 3.4 percent from a year
earlier in the October-December period, the same pace as the previous prediction,
according to a report by the Bank of Korea (BOK). The base year for revised GDP
figures was changed to 2005 from 2000.
The fourth-quarter figure marked the worst drop since the first quarter of 1998
when the nation's GDP, the broadest measure of economic performance, fell 7.8
percent on-quarter in the aftermath of the Asian financial crisis.
For all of 2008, Asia's fourth-largest economy grew a revised 2.2 percent, down
from an earlier 2.5 percent estimate. In 2007, the economy expanded 5.1 percent.
The report comes three days after the government unveiled a 28.9 trillion won
(US$21.6 billion) extra budget, the biggest ever, aimed at creating more jobs and
jump-starting the sputtering economy. Of the total, it set aside 17.7 trillion
won for fiscal spending.
Exports of goods, which account for about 60 percent of the local economy,
plunged 12.6 percent on-quarter in the fourth quarter, sharper than a previous
estimate of an 11.9 percent decline.
Private spending, one of the main growth engines of the South Korean economy,
fell 4.6 percent, compared with the 4.8 percent contraction previously estimated.
Facility investment tumbled 14.2 percent, compared with an earlier estimate of a
16.1 percent tumble while construction investment fell 3 percent, less than an
estimate of a 4 percent contraction.
The government and the central bank are making efforts to cushion the impact of
the global recession and the financial rout on the Korean economy by unveiling
stimulus packages and cutting the key interest rate. The Korean economy is widely
expected to post negative growth this year with Finance Minister Yoon Jeung-hyun
predicting a 2 percent contraction.
Yoon said on Tuesday that the additional spending, coupled with deregulation and
more corporate investment, could raise the country's GDP by 2 percentage points
and create 550,000 new jobs this year.
In March, the BOK froze the rate after six consecutive rate cuts to gauge the
effects of reductions on the economy and brace for a deeper economic downturn.
Between October and February, the central bank slashed the rate by a total of
3.25 percentage points.
Although the BOK stood pat on the rate for March, many experts said its monetary
easing steps will likely continue for the next few months, given the slumping
economy.
sooyeon@yna.co.kr
(END)
