Slow prices to slow down exports to prevent South Korea's economic recovery

Xinhua News Agency, Seoul, July 27th: Slows from high prices to slow exports hinder the recovery of South Korea's economic recovery

Xinhua News Agency reporter Lu Rui Sun Yiran

The preliminary estimate released by the Bank of Korea (central bank) on the 26th shows that South Korea ’s GDP in the second quarter of this year increased by 0.7%month -on -month. Some analysts pointed out that due to factors such as repeated epidemic, high prices and slow exports, South Korea's economic downturn risk increased in the second half of this year, and economic recovery was hindered.

South Korea's economic growth in the second quarter depends mainly on domestic demand. Affected by the Ukrainian crisis, the global supply chain, and the slowdown of global trade, the exports of South Korean economy performed poorly in the second quarter.

According to data from the Bank of Korea, thanks to the increase in consumption of clothing, catering accommodation, and entertainment culture, South Korean personal consumption increased by 3%in the second quarter, government expenditure increased by 1.1%month -on -month, construction investment increased by 0.6%month -on -month. Exit and imports decreased by 3.1%and 0.8%month -on -month.

The data also shows that in the second quarter, the output value of the South Korean service industry increased by 1.8%month -on -month, the output value of the construction industry increased by 0.2%month -on -month. The output value of agricultural, forestry and fishery decreased by 6.4%month -on -month, and the output value of manufacturing was 1.1%month -on -month.

The Bank of South Korea said that if the South Korean economy can maintain a 0.3%growth month -on -month growth in the third and fourth quarters of this year, it is expected to achieve the goal of 2.7%of GDP growth throughout the year. However, some analysts pointed out that the downlink risk of South Korea's economy in the second half of the year is greater.

The person in charge of the Bank of Korea Economic Statistics stated that factors such as rising prices, slowing growth momentum of major global economies, rebound in the new crown epidemic, and uncertain foreign trade environment may restrict South Korea's economic growth in the second half of the year.

The recent recent economic trend report released by the Ministry of Planning and Finance of South Korea also pointed out that the continued deterioration of external conditions has led to the rise in domestic prices, restricting export recovery, or slowing down South Korea's economic growth.

According to data released by the South Korean Department of Statistics, South Korea's June consumer price index was 108.22, an increase of 6%year -on -year, and the increase has reached a new high in nearly 24 years. The prices of agricultural products and oil products have soared prices.

Inflation restricts people's purchasing power. The consumer confidence index in June of South Korea decreased by 6.2 points to 96.4 points from the previous month, which is the lowest level since January 2021, indicating that consumers are pessimistic.

The growth rate of South Korea's exports began to slow. Exports in June only increased by 5.4%year -on -year, and the increase in 16 months fell to one digit for the first time; imports increased by 19.4%year -on -year, and the trade deficit continued to expand.

The Yonhap News Agency quoted data newspapers from the Economic Cooperation and Development Organization that the South Korean prosperity index was 98.87 in June, a month -on -month decline of the 13th consecutive month. Generally speaking, the index declines from the previous month that the economic growth may slow down in the future, and the index is lower than 100 foreshadowing the economy or entering the downlink situation in the future.

- END -