"South Korea's Q3 GDP Expected to Average -1.5%... Likely Better Than Major Countries"

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] While the global economy is struggling due to the impact of the novel coronavirus disease (COVID-19), South Korea's economic growth rate in the third quarter is expected to show a relatively favorable performance compared to major countries.

On the 13th, Bloomberg compiled forecasts from 24 domestic and international investment banks (IBs) and economic research institutes, predicting that South Korea's third-quarter gross domestic product (GDP) growth rate will average -1.5% year-on-year.

Among the 20 major countries (G20), excluding the United States, Japan, and Canada whose GDP growth rates are projected quarter-on-quarter, South Korea ranks second after China (5.2%) among the remaining 16 countries. China has shifted from an economic recession to growth since the second quarter.

On the other hand, countries such as the United Kingdom (-10.7%), Italy (-9.7%), France (-9.5%), and Germany (-6.5%), which have implemented lockdown measures since last March to curb the spread of COVID-19 and face growing concerns over economic recession due to recent resurgence, are expected to show economic improvement compared to the second quarter but still record significant negative growth.

In the case of the United States, the third-quarter GDP growth rate forecast is an average of 21.2% quarter-on-quarter (annualized). Considering the second-quarter growth rate was -31.7%, this reflects a significant base effect.

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