, Korea

Korea's 2Q12 GDP to dip 2.6%

The recent 25bps rate cut is of little help.

According to BBVA Research, being heavily export-dependent, Korea’s economy is highly exposed to weakening external demand. With the economy slowing and inflation (2.2% y/y in June) remaining well within the official 2-4% target range, the Bank of Korea cut interest rates on July 12th by 25bps, the first easing move since 2009.

Here's more from BBVA:

The move came against weakening external demand, which resulted in a half percentage point lowering of the BoK’s full year forecast to 3.0% y/y (BBVA: 2.9% y/y). We expect a further slowdown in Korea’s second quarter GDP. Given recent fiscal stimulus measures and the likelihood of another rate cut during the year, we expect Q2 to reflect a bottoming out of growth momentum, although there are downside risks due to the weak external environment. We expect growth to slow to 2.6% y/y in the second quarter.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!