Global| Aug 22 2003Korean Economy Weakening
Summary
Similar to a number of other nations, growth in South Korea has diminished in early 2003. And similar to other countries, exports are at least partially to blame. Total GDP (in 1995 won) for the second quarter was up just 1.9% from a [...]
Similar to a number of other nations, growth in South Korea has diminished in early 2003. And similar to other countries, exports are at least partially to blame. Total GDP (in 1995 won) for the second quarter was up just 1.9% from a year ago, more notably including outright quarter-to-quarter declines in the two latest periods. Second quarter exports were down 0.9% from the first, breaking a string of six quarters of gains, some running at 5%-6% quarterly rates, which began as the US recession was ending in late 2001. For Korea, the slowing in export volume is no small matter: in that nation, exports constitute 57% of real GDP and they are larger than private consumption.
Other segments of the Korean economy also weakened, most especially investment in equipment and consumption expenditures. These latter were down in both the first two quarters of 2003, contributing, along with the slowdown in exports, to the two-quarter decline in total GDP.
| GDP & Selected Components (% Changes) |
2nd Quarter 2003 (Q/Q) |
1st Quarter 2003 (Q/Q) |
Year/Year | 4th Qtr/4th Qtr|||
|---|---|---|---|---|---|---|
| 2002 | 2001 | 2000 | ||||
| Total GDP | -0.7 | -0.4 | 1.9 | 6.8 | 3.5 | 5.0 |
| Private Consumption | -1.4 | -2.2 | -2.2 | 4.3 | 7.2 | 3.9 |
| Gross Fixed Capital Formation | -1.7 | 1.9 | 3.5 | 6.8 | 4.9 | 2.0 |
| Exports | -0.9 | 0.2 | 10.3 | 24.2 | -1.9 | 14.3 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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