South Korea economic growth slows in Q4

| January 26, 2011 | 0 Comments

South Korea‘s economy, which is Asia’s fourth-largest, saw growth slow to 0.5% in the October to December period.

Last year, the economy expanded strongly - boosted by exports and increasing consumption and facilities investment.

However, retail spending and manufacturing and construction slowed, which was attributed to the slowdown.

The Bank of Korea were optimistic about the figures, however, and said growth will pick up in the current quarter.

On an annual basis, meanwhile, the economy grew by 6.1% - the fastest pace since 2002, said the Bank.

The Bank’s head of economic statistics, Jung Youg-Taek, said: “We can say the country has now got out of the global financial crisis. The domestic economy will continue to expand every quarter this year, although there could be some ups and downs.”

Analysts expect the rate of economic growth to accelerate in the current quarter due to rising exports and local demand, which, in turn, will drive inflation expectations higher.

Earlier this month, the central bank lifted interest rates to 2.75%, in an attempt to dampen rising prices.

In related news, South Korea currently has the lowest unemployment rate in the 33-member OECD countries.

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