ID :
64352
Fri, 06/05/2009 - 16:58
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https://www.oananews.org//node/64352
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S. Korean economy grows 0.1 pct in Q1
By Kim Soo-yeon
SEOUL, June 5 (Yonhap) -- The South Korean economy grew 0.1 percent on-quarter in the January-March period on the government's fiscal spending and rate cuts, the same pace as previously predicted, the central bank said Friday.
But from a year earlier, the country's gross domestic product (GDP) contracted
4.2 percent in the first quarter, compared with an earlier estimate of a 4.3
percent on-year decline, according to the Bank of Korea (BOK).
The country's GDP, the broadest measure of economic performance, shrank 5.1
percent in the final quarter of 2008, the worst performance in 11 years. But it
narrowly averted a recession, two straight quarters of contraction, by posting a
mild expansion in the first quarter.
Exports of goods, which account for about 60 percent of the local economy, fell
3.4 percent on-quarter in the first quarter, the same pace as earlier estimated.
Private spending, one of the main growth engines of the South Korean economy,
expanded 0.4 percent from three months earlier.
But facility investment tumbled 11.2 percent, sharper than an earlier estimate of
a 9.6 percent fall, reinforcing views that the real economy remains sluggish.
Construction investment increased 5.2 percent, less than an estimate of a 5.3
percent expansion.
The report comes amid rising cautious optimism that Asia's fourth-largest economy
may be bottoming out. Industrial output expanded month-on-month for the fourth
straight month in April. Business and consumer sentiment has climbed on hopes for
an economic recovery.
But the government struck a cautious note, saying that the South Korean economy
may be recovering as a global downturn abates, but it remains in a slump as
domestic demand and exports are not showing signs of marked improvement.
Corporate investments remained weak amid cloudy economic outlooks.
In April, parliament approved a record 28.4-trillion-won (US$22.8 billion) extra
budget aimed at generating jobs and boosting domestic demand.
In May, the BOK froze its key interest rate at an all-time low of 2 percent for a
third straight month, saying that a sharp decline in economic activity has
markedly eased.
The central bank made six consecutive rate cuts totaling 3.25 percentage points
between October and February in a bid to bolster the slumping economy.
The BOK predicted that the Korean economy will contract 2.4 percent this year,
due to falling exports and sluggish domestic demand.
SEOUL, June 5 (Yonhap) -- The South Korean economy grew 0.1 percent on-quarter in the January-March period on the government's fiscal spending and rate cuts, the same pace as previously predicted, the central bank said Friday.
But from a year earlier, the country's gross domestic product (GDP) contracted
4.2 percent in the first quarter, compared with an earlier estimate of a 4.3
percent on-year decline, according to the Bank of Korea (BOK).
The country's GDP, the broadest measure of economic performance, shrank 5.1
percent in the final quarter of 2008, the worst performance in 11 years. But it
narrowly averted a recession, two straight quarters of contraction, by posting a
mild expansion in the first quarter.
Exports of goods, which account for about 60 percent of the local economy, fell
3.4 percent on-quarter in the first quarter, the same pace as earlier estimated.
Private spending, one of the main growth engines of the South Korean economy,
expanded 0.4 percent from three months earlier.
But facility investment tumbled 11.2 percent, sharper than an earlier estimate of
a 9.6 percent fall, reinforcing views that the real economy remains sluggish.
Construction investment increased 5.2 percent, less than an estimate of a 5.3
percent expansion.
The report comes amid rising cautious optimism that Asia's fourth-largest economy
may be bottoming out. Industrial output expanded month-on-month for the fourth
straight month in April. Business and consumer sentiment has climbed on hopes for
an economic recovery.
But the government struck a cautious note, saying that the South Korean economy
may be recovering as a global downturn abates, but it remains in a slump as
domestic demand and exports are not showing signs of marked improvement.
Corporate investments remained weak amid cloudy economic outlooks.
In April, parliament approved a record 28.4-trillion-won (US$22.8 billion) extra
budget aimed at generating jobs and boosting domestic demand.
In May, the BOK froze its key interest rate at an all-time low of 2 percent for a
third straight month, saying that a sharp decline in economic activity has
markedly eased.
The central bank made six consecutive rate cuts totaling 3.25 percentage points
between October and February in a bid to bolster the slumping economy.
The BOK predicted that the Korean economy will contract 2.4 percent this year,
due to falling exports and sluggish domestic demand.
