South Korea announces stimulus package after disappointing Q2 GDP
SEOUL – South Korea’s Q2 GDP grew 3.6% y/y, lower than both the 3.9% reported in Q1 and market expectations of 3.7%. Private consumption contracted 0.3% q/q in Q2, compared with 0.2% growth in Q1, suggesting that the Sewol ferry accident has dragged domestic consumption. Overall investment declined by 0.1% q/q (Q1: -0.9%), led by a 4.2% decline in intellectual property products.