South Korea's growth slowest in more than 2 years

South Korea's growth slowest in more than 2 years

SEOUL, South Korea (AP) — South Korea's quarterly growth slowed to the lowest in more than two years as a severe drought hit agriculture & an outbreak of Middle East respiratory syndrome sapped consumption.

The economy expanded 2.2 percent in the second quarter over a year earlier, the Bank of Korea said Thursday. That's the lowest since the first quarter of 2013. Asia's fourth-largest economy eked out 0.3 percent growth from the previous quarter.

The bank said private consumption turned negative as spending on services dropped while agricultural output plunged due to a drought.

p>South Korea's economy was expected to ebb last quarter as foreign tourists cancelled visits & people stayed home because of the MERS outbreak which began in May & has killed 36 people.

No new confirmed cases of MERS have been reported in South Korea since July 4 & tourist numbers have begun to recover.

To assist local restaurants, retailers, hotels & tourism industries, the government has been encouraging South Koreans to spend their vacations within South Korea.

Other areas of the economy including exports & private investment were moreover weak.

South Korea's finance ministry is seeking parliamentary approval for a $10.6 billion stimulus package to aid recovery & to achieve annual growth of 3 percent this year.

But many forecasters, including South Korea's central bank, predict that the country's economy will expand less than 3 percent in 2015, which would mean a slowdown from the previous two years.

South KoreaBank of Korea

Source: “Associated Press”

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS