Jakarta, CNCB Indonesia – Economy of South Korea (South Korea) recession official in the latest announcement Tuesday (27/10/2020). After in the second quarter of 2020 (Q2) the economy was -2.7%, the GDP of the Kpop country also contracted 1.3% in Q3 2020 on an annual basis (yoy).
This made the country ‘oppa’ officially enter the brink of recession. A recession is defined as the negative economic growth for two or more consecutive quarters in a year.
Quoting Trading Economics from the Bank of Korea, on the expenditure side, consumption fell further -2.3% from -1.3%. Meanwhile, gross fixed capital formation increased by 2.6% from 1.9% previously.
Exports fell 3.7% from -13% previously. Meanwhile, imports fell 5.3% from -8.5% previously.
On a quarterly scale (qtq), economic activity rebounded. Where the economy was positive 1.9% after shrinking 3.2% in the previous quarter.
This beat the previous expectation of a 1.7% gain forecast. Growth was mainly driven by manufacturing which rose 7.6% after an 8.9% drop in the previous quarter and the service sector which also rose 0.7% after falling 0.9%.
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