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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH KOREA
Q1 GDP printed a touch above market expectations, coming in at +0.3% q/q (+0.2%q/q expected). This allowed South Korea to avoid two-consecutive quarters of negative growth (Q4 was -0.4% q/q). Still, y/y momentum eased to +0.8% (slightly below +0.9% expected and versus 1.3% prior).
- This is the softest pace of y/y growth since the end of 2020, see the chart below.
- Looking at the detail, consumer spending rose 0.5% q/q, while exports rose in q/q terms, but slowed further in y/y terms. Construction spending was positive but momentum slowed. Business investment was a big drag, -4.0% q/q.
- Weaker sentiment in housing and the lagged impact of higher rates may still constrain consumption going forward.
- By industry we had 8 out of 14 record negative q/q growth. Manufacturing rebounded +2.6%, but is still down -3.3% in y/y terms.
- All in all, the data is unlikely to shift the narrative of a still challenging growth backdrop for South Korea. The central bank recently noting that growth may be below its 1.6% 2023 forecast.
Fig 1: South Korea GDP Growth
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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