South Korea’s economy recorded its strongest growth in more than five years in the second quarter as increased government spending and record low interest rates insulated it from the global recession.
Asia’s fourth-largest economy expanded 2.3 percent quarter-on-quarter in the three months ended June 30, the Bank of Korea said yesterday in a report.
South Korea joins Singapore and China among the Asian nations that have released stronger growth figures in recent weeks — another sign the region is emerging from the world’s worst downturn in decades.
There are doubts, however, whether South Korea and Asia’s upturn will be sustained once the effects of government pump priming wear off.
Kang Chang-ku, an economist at the central bank, said the last time GDP grew more was in the fourth quarter of 2003 when it expanded 2.6 percent. The second quarter figures are preliminary and may be revised.
The expansion marked the second straight quarter of growth for Asia’s fourth-largest economy after a contraction in the final quarter of last year.
It eked out a 0.1 percent gain quarter-on-quarter in the first quarter after a contraction of 5.1 percent in the previous quarter.
But the result was not all good news and showed that some fragility remains.
For example, when compared with the same period last year, South Korea’s economy shrank 2.5 percent. That marked the third straight quarter of year-on-year shrinkage.
The last time that happened was in 1998, when GDP contracted from the previous year in all four quarters, said Kang, the central bank economist.
Kwon Goohoon, an economist at Goldman Sachs in Seoul, said in a note that South Korea’s growth was “driven by a good mix of strong fiscal stimulus, a weak KRW [South Korean won] and monetary easing.”
He expressed doubt, however, that such a strong performance would be repeated the rest of the year as fiscal stimulus wanes and credit expansion slows.
CALL FOR SUPPORT: President William Lai called on lawmakers across party lines to ensure the livelihood of Taiwanese and that national security is protected President William Lai (賴清德) yesterday called for bipartisan support for Taiwan’s investment in self-defense capabilities at the christening and launch of two coast guard vessels at CSBC Corp, Taiwan’s (台灣國際造船) shipyard in Kaohsiung. The Taipei (台北) is the fourth and final ship of the Chiayi-class offshore patrol vessels, and the Siraya (西拉雅) is the Coast Guard Administration’s (CGA) first-ever ocean patrol vessel, the government said. The Taipei is the fourth and final ship of the Chiayi-class offshore patrol vessels with a displacement of about 4,000 tonnes, Lai said. This ship class was ordered as a result of former president Tsai Ing-wen’s (蔡英文) 2018
UKRAINE, NVIDIA: The US leader said the subject of Russia’s war had come up ‘very strongly,’ while Jenson Huang was hoping that the conversation was good Chinese President Xi Jinping (習近平) and US President Donald Trump had differing takes following their meeting in Busan, South Korea, yesterday. Xi said that the two sides should complete follow-up work as soon as possible to deliver tangible results that would provide “peace of mind” to China, the US and the rest of the world, while Trump hailed the “great success” of the talks. The two discussed trade, including a deal to reduce tariffs slapped on China for its role in the fentanyl trade, as well as cooperation in ending the war in Ukraine, among other issues, but they did not mention
HOTEL HIRING: An official said that hoteliers could begin hiring migrant workers next year, but must adhere to a rule requiring a NT$2,000 salary hike for Taiwanese The government is to allow the hospitality industry to recruit mid-level migrant workers for housekeeping and three other lines of work after the Executive Yuan yesterday approved a proposal by the Ministry of Labor. A shortage of workers at hotels and accommodation facilities was discussed at a meeting of the legislature’s Transportation Committee. A 2023 survey conducted by the Tourism Administration found that Taiwan’s lodging industry was short of about 6,600 housekeeping and cleaning workers, the agency said in a report to the committee. The shortage of workers in the industry is being studied, the report said. Hotel and Lodging Division Deputy Director Cheng
TOKYO SUMMIT: The new Japanese PM’s words have demonstrated Japan’s ‘firm position on urging the prioritization of cross-strait peace,’ the foreign ministry said Minister of Foreign Affairs Lin Chia-lung (林佳龍) yesterday thanked US President Donald Trump and Japanese Prime Minister Sanae Takaichi for supporting peace in the Taiwan Strait, a day after the two at a summit in Tokyo emphasized the importance of regional stability and ahead of a meeting between Trump and Chinese President Xi Jinping (習近平) in South Korea today. The previous day’s meeting was the first time Takaichi had met with the US leader since becoming Japanese prime minister, the Ministry of Foreign Affairs said in a statement. Since taking office on Tuesday last week, Takaichi has urged the international community to
RSS