Q1 Growth Rate at -1.4% This Year... Lowest Since 2008 Financial Crisis (Update)

Private Consumption Falls 6.4%... Lowest Since 1998 Foreign Exchange Crisis

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] South Korea's economic growth rate in the first quarter of this year recorded -1.4%, the lowest since the 2008 global financial crisis. This is due to the simultaneous slump in private consumption and exports.

According to the Bank of Korea's announcement on the 23rd of the '2020 Q1 and Q4 Real Gross Domestic Product (Preliminary)', the real GDP in Q1 decreased by 1.4% compared to the previous quarter.

The year-on-year growth rate for Q1 this year was only 1.3%. This is interpreted as a result of the slowdown in exports and private consumption due to the impact of the novel coronavirus disease (COVID-19).

Exports increased in semiconductors but decreased by 2.0%, mainly in automobiles, machinery, and chemical products. This is the lowest since -3.2% in Q1 last year.

As exports declined, imports also decreased. Mining products and automobiles fell, resulting in a 4.1% decrease.

Facility investment and construction investment recorded 0.2% and 1.3%, respectively, showing a simultaneous slump.

Both private and government sectors showed a slowdown in growth.

Private consumption decreased by 6.4%, with both goods (passenger cars, clothing, etc.) and services (food and accommodation, entertainment and culture, etc.) declining. This is the lowest since the 1998 foreign exchange crisis.

This content was produced with the assistance of AI translation services.