South Korea’s GDP contracted -3.3% qoq in Q2, as shown in data released by Bank of Korea. The decline was the worst since Q1 1998, and steeper than analysts’ expectations of around -2.3% qoq. Also, with Q1’s -1.3% fall, South Korean’s economy has formally entered a technical recession this year, joining other major Asian countries like Japan and Singapore. Annually, GDP shrank -2.9% yoy in Q2.
“It’s possible for us to see China-style rebound in the third quarter as the pandemic slows and activity in overseas production, schools and hospitals resume,” South Korean finance minister finance minister Hong Nam-ki said after the data was released.
