ID :
57557
Mon, 04/27/2009 - 06:30
Auther :
Shortlink :
https://www.oananews.org//node/57557
The shortlink copeid
Manufacturing growth falls to record low in Q1: BOK
SEOUL, April, 26 (Yonhap) -- Growth in South Korea's manufacturing sector fell to a record low in the first quarter as the global economic slump shook both domestic demand and exports, the central bank said Sunday.
The Bank of Korea (BOK) said the manufacturing sector posted a contraction of
13.5 percent on-year in the first three months of this year, the worst number
tallied since South Korea began compiling such a report in 1970.
The drop follows a negative growth of 9.1 percent reported for the fourth quarter
and is a sign of the troubles facing the country's economy.
South Korea, which had been one of the fastest growing economies in the world up
till the late 1990s, usually posts gains in terms of output, with the worst
contraction being the 11.7 percent drop posted for the second quarter of 1998, as
the country struggled to recover from the Asian financial crisis.
The BOK added that problems in the manufacturing sector played a crucial role in
the South Korean economy contracting 4.3 percent annually up till March.
It pointed out that efforts by the government to revive the economy with various
stimulus packages caused construction field to log a marginal 0.6 percent gain in
output, with agriculture and fisheries moving up 1.2 percent. Growth in the
service sector, hit by the weak domestic economy was down 0.5 percent from
January through March.
Another factor that affected production was the rise in inventories that
compelled many to cut back on production.
Experts at the bank, meanwhile, said that because the manufacturing sector
accounts for 46.5 percent of the country's total output, the sharp drop in growth
could have wide-ranging repercussions and depress the country's employment
market.
The service sector makes up 40.4 percent, with construction and farm products
making up 9.3 percent and 1.8 percent, respectively.
"The importance of manufacturing was felt the hardest in the labor market, which
was hit hard in March," a official said.
There were 186,000 less people working in the manufacturing companies in the
cited month, while thousands of jobs were lost in retails, transportation,
telecommunications and construction sectors.
Private experts said that while figures were particularly bad, coming into this
year, conditions may improve once the inventory problem is resolved in the coming
months.
The Bank of Korea (BOK) said the manufacturing sector posted a contraction of
13.5 percent on-year in the first three months of this year, the worst number
tallied since South Korea began compiling such a report in 1970.
The drop follows a negative growth of 9.1 percent reported for the fourth quarter
and is a sign of the troubles facing the country's economy.
South Korea, which had been one of the fastest growing economies in the world up
till the late 1990s, usually posts gains in terms of output, with the worst
contraction being the 11.7 percent drop posted for the second quarter of 1998, as
the country struggled to recover from the Asian financial crisis.
The BOK added that problems in the manufacturing sector played a crucial role in
the South Korean economy contracting 4.3 percent annually up till March.
It pointed out that efforts by the government to revive the economy with various
stimulus packages caused construction field to log a marginal 0.6 percent gain in
output, with agriculture and fisheries moving up 1.2 percent. Growth in the
service sector, hit by the weak domestic economy was down 0.5 percent from
January through March.
Another factor that affected production was the rise in inventories that
compelled many to cut back on production.
Experts at the bank, meanwhile, said that because the manufacturing sector
accounts for 46.5 percent of the country's total output, the sharp drop in growth
could have wide-ranging repercussions and depress the country's employment
market.
The service sector makes up 40.4 percent, with construction and farm products
making up 9.3 percent and 1.8 percent, respectively.
"The importance of manufacturing was felt the hardest in the labor market, which
was hit hard in March," a official said.
There were 186,000 less people working in the manufacturing companies in the
cited month, while thousands of jobs were lost in retails, transportation,
telecommunications and construction sectors.
Private experts said that while figures were particularly bad, coming into this
year, conditions may improve once the inventory problem is resolved in the coming
months.
