South Korean GDP contracted in Q2 – eyes on the Bank of Korea for a rate cut

The contraction for South Korea’s economy
in the second quarter was unexpected:

Advance Q2 GDP -0.2% q/q, the sharpest contraction in six quarters

• expected +0.1%, prior +1.3% (this 1.3% growth in Q1 was the fastest since Q4 2021)
• strong exports
• consumer spending fell

For the y/y, came in at +2.3%

• expected +2.5%, prior +3.3%

Attention now turns to the Bank of Korea meeting on August 22. Market expectations have been for a cut in Q4.

This article was written by Eamonn Sheridan at www.forexlive.com.