South Korea: Headline GDP improves but details still weak – ANZ

ANZ analysts note that South Korea’s preliminary Q2 GDP rebounded following an exceptionally weak performance in Q1.

Key Quotes

“Although there was a broad-based improvement across the major components, investment remained a drag on headline y/y growth while government spending was the top contributor.”

“The big picture is that the economy remains on a shaky footing and continues to face multiple headwinds, including weak external demand, a global tech downturn and souring relations with Japan. We thus maintain our full-year growth forecast of 2.0%.”