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BNN bnnbloomberg.ca 26 Jan, 2023 00:45 am

South Korea’s Economy Contracts as Exports Fall, Rates Rise

South Korea’s Economy Contracts as Exports Fall, Rates Rise

More Video 57m ago South Korea’s Economy Contracts as Exports Fall, Rates Rise (Bloomberg) -- South Korea’s economy shrank for the first time since the beginning of the pandemic last quarter as exports fell and consumer spending edged down in response to rising interest rates.For this year, Korea’s economy is expected to grow slightly less than 1.Recent weakness in economic activity prompted markets to interpret the hike as the final move in the current tightening cycle.As the outlook darkens, the BOK is winding down its 18-month tightening cycle.

4% from the previous three months, the Bank of Korea said Thursday, matching a Bloomberg survey of economists.Bank of Korea Governor Rhee Chang-yong had flagged the possibility of a contraction earlier this month when he delivered a quarter percentage-point interest rate increase.

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