President Moon: "Korean Economy Shows Miraculous Resilience... Q3 Rebound Expected" (Update)

Q2 GDP -3.3%, Lowest in 22 Years... "Better than Competitors" Optimism
"Various Economic Indicators Recovering from Q2 Low... Now Is the Right Time for a Rebound"

President Moon Jae-in is presiding over a senior secretaries and aides meeting at the Blue House on the afternoon of the 27th. 2020.7.27 [Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] President Moon Jae-in said on the 27th, "Amid the global economic depression, our economy recorded negative growth in the second quarter following the first quarter," but added, "Compared to the Organization for Economic Cooperation and Development (OECD) countries, where growth has sharply declined, this was a miraculous outcome."

President Moon made these remarks during an afternoon senior secretaries and aides meeting at the Blue House, stating in his opening remarks, "The government expects to achieve economic rebound starting from the third quarter."

According to the preliminary data released by the Bank of Korea on the 23rd, the real gross domestic product (GDP) growth rate for the second quarter of this year fell by 3.3% compared to the previous quarter. This marks two consecutive quarters of negative growth following the first quarter (-1.3%) and is the lowest quarterly figure in 22 years and 3 months since the first quarter of 1998 during the foreign exchange crisis.

Nevertheless, President Moon described this as a "miraculous outcome" because among OECD member countries, the negative growth rate was relatively smaller.

However, President Moon noted, "Being relatively better off than competing countries may not bring comfort to the lives of our citizens," and emphasized, "It is now time to take a step further, break out of the dark tunnel of negative growth, and focus all efforts on reversing growth." He added, "Various economic indicators have shown a gradual recovery from the second quarter, starting in June and July, making this the right time to achieve a full-scale economic rebound."

President Moon said, "Domestic demand has already begun to revive from the second quarter, so it is expected to improve further in the third quarter," and added, "Designating August 17 as a temporary holiday is expected to provide rest for the exhausted people while also contributing to revitalizing domestic demand."

Regarding exports, which sharply declined by 16.6% in the second quarter, he said, "It is fortunate that the decline has eased since July," analyzing, "Our strengths in system semiconductors, organic light-emitting diodes (OLED), and mobile phone sectors have shifted to export growth, and the significant increase in eco-friendly future car exports is also a positive trend." He continued, "Although the unprecedentedly stalled global economic recovery is slow, making it difficult to resolve difficulties quickly, the government will actively address the challenges faced by export companies and strengthen multifaceted support to accelerate export recovery."

President Moon also stated, "The Korean New Deal will serve as a pillar supporting the economic rebound," and expressed his determination, saying, "The government views the third quarter as an unmissable opportunity to achieve economic rebound and will mobilize all available policy measures with extraordinary resolve."

Meanwhile, in relation to the heavy rain damage during the monsoon season, President Moon urged, "The government should be prepared and conduct thorough safety inspections," and requested, "Relevant ministries and local governments should meticulously conduct pre-inspections and prepare countermeasures for areas at risk of landslides, steep slope collapses, and flooding."

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