S Korea's GDP grows by more than expected in Q2 2022: ING
27 Jul 22 2 min read
Exports and imports fell by 3.1 per cent and 0.8 per cent respectively, reflecting weak external demand for chemicals and basic metals.
As China is the main destination for basic metals and chemicals, the strict lockdown measures in Q2 appeared to have had a negative impact on South Korea’s exports, ING noted. The decline in oil imports also suggested weak external demand as most of the imported oil is re-exported through refining.
Domestic demand grew solidly mainly due to a strong recovery in consumption while investments remained relatively soft.
- Germany's inflation rate steady at 2.2% in April 2024
- China’s current account surplus $39.2 bn in Q1 2024: Official data
- Eurozone labour productivity risks amid economic shocks: Fitch report
- PACEID delegation urges Chinese company to invest in Uganda
- German manufacturing orders decline in March 2024
- Bank of England keeps interest rates unchanged at 5.25%
Private consumption was up by 3 per cent with semi-durable goods consumption and services increasing.
ING expects consumption-driven growth to slow this quarter. The initial pent-up demand-driven spending will normalise soon as high inflation weakens consumers’ purchasing power.
Survey data suggests that consumer sentiment has been hit faster and harder than expected by the Bank of Korea’s recent rate hikes. The debt repayment burden will increase as more than 70 per cent of outstanding loans are based on floating rates.
The recent resurgence of COVID cases will also rein in consumer spending and activity to some extent. External demand conditions will also adversely affect the South Korean economy as demand from the United States and the European Union is expected to slow sharply.
Despite all these downside risks, ING does not expect a contraction in the second half of this year.
Fibre2Fashion News Desk (DS)
Popular News
|
NCTO outlines steps for US to reverse fall in textile manufacturing |
|
Euro area seasonally-adjusted Mar unemployment rate 6.5%; 6% for EU |
|
US textiles & clothing imports surge by volume in Jan-Mar 2024 |
|
Rising imports from China: A growing concern for Indian industries |
|
CITI YEG’s event explores key textile & apparel industry trends |
|
European fashion giants post diverse regional performance in Q1 FY24 |