South Korea’s financial system contracted sequentially within the fourth quarter of 2022 for the primary time in additional than two years on account of weak exports and personal consumption.
Gross home product shrank 0.4% from the prior quarter through the October-December interval–the primary sequential contraction for the reason that second quarter of 2020–after a 0.3% enlargement within the third quarter, confirmed preliminary Bank of Korea information on Thursday.
The newest studying–in contrast with a market forecast of a 0.3% contraction–confirmed that personal consumption fell and exports declined sharply on sluggish international demand for semiconductors, petrochemicals and different Korean items. Government spending remained robust however development and facility investments remained weak.
Year-on-year, the financial system expanded 1.4% within the fourth quarter–under the market forecast of 1.5% development–following the prior quarter’s 3.1% development.
For the complete 12 months of 2022, the financial system grew 2.6% as projected by the Bank of Korea. The tempo of development slowed from 4.1% in 2021.
The central financial institution expects the financial system to lose steam additional this 12 months, forecasting 1.7% development in 2023.