"South Korea's Q2 Economic Growth Rate Ranks 20th Among 35 Countries... Significant Impact from US and China Economic Slowdown"

Among OECD Countries, Remaining in the Lower-Middle Tier

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] South Korea's economic growth rate in the second quarter ranked around 20th among 35 major countries, including OECD member countries. As the global economic slowdown, including the United States and China, intensifies, concerns are emerging that economic growth in the second half of the year may also face headwinds.

According to the Bank of Korea on the 12th, excluding Lithuania, Colombia, Costa Rica, Luxembourg, and New Zealand, which did not release statistics, the real GDP growth rate (quarter-on-quarter) for the second quarter of this year was surveyed for 35 countries including 33 OECD member countries plus China and Indonesia. South Korea recorded 0.7%, placing it in the lower-middle tier. This was a two-rank drop from 18th place (0.6%) in the first quarter.

The country with the highest economic growth rate in the second quarter was Iceland (3.9%). It was followed by the Netherlands (2.6%), T?rkiye (Turkey, 2.1%), Ireland (1.8%), Israel (1.7%), Austria (1.5%), Greece (1.2%), Spain (1.1%), Italy (1.1%), and Hungary (1.0%).

Among major economic powers, Japan (0.9%) ranked 17th, France (0.5%) 24th, Germany (0.1%) 27th, and the United States (-0.1%) 31st. China (-2.6%) had the lowest growth rate among the 35 countries with confirmed second-quarter statistics.

With the second-quarter growth rates of South Korea’s two major export partners, the United States and China, both declining, it is interpreted that this negatively affects South Korea’s growth rate as well.

In a recent Monetary and Credit Policy Report submitted to the National Assembly, the Bank of Korea diagnosed, "Until the first half of the year, there was a favorable growth trend exceeding potential levels centered on private consumption, but recently, growth momentum has gradually slowed mainly in investment and exports."

Due to rising raw material prices and sluggish exports, it is expected that South Korea’s trade balance will find it difficult to escape a deficit for the time being. The Bank of Korea stated, "Trade deficits continue due to the rising import prices of energy-related products such as petroleum," and added, "As international oil prices remain high and the impact of the global economic slowdown intensifies, the trade deficit trend is expected to continue for the time being due to export slowdown and increased imports."

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