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GDP data from South Korea showed the economic expansion slowed more than expected in Q2, printing 0.7% Q/Q against estimates of 0.8% and 5.9% Y/Y versus consensus 6.0%.
- A slower pace of exports and weaker investments were said to be a drag on the figure, further slowdown is expected in Q3 as South Korea deals with the fourth wave of coronavirus with cases at a record high and restrictions tightened across the country. At the latest BoK meeting the Central Bank were upbeat on growth and maintained the May forecast for a growth rate of 4% this year. One hope for policy makers is the stimulative effect of a KRW 34.9tn stimulus package passed last week.