Hong Nam-ki "Q2 Growth Rate 0.7%, Only Advanced Country to Recover to Pre-Crisis Level"

Q2 Economic Growth Rate 0.7%... Private Consumption Highest in 12 Years

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated regarding the second quarter economic growth rate of 0.7% that "the greater significance lies in domestic demand driving growth at a time when exports and investment were expected to pause since the second half of last year."

On the 27th, through his social media (SNS), Deputy Prime Minister Hong said, "Our economy is the only one among eight advanced countries within the top 10 economies to have recovered to pre-crisis levels in the first quarter, and it is expected to maintain the fastest recovery pace through the second quarter."

Earlier, according to the preliminary report on the second quarter real Gross Domestic Product (GDP) released by the Bank of Korea that morning, the quarter-on-quarter GDP growth rate for the second quarter was recorded at 0.7%. This marks four consecutive quarters of positive growth following 2.2% in the third quarter of last year, 1.1% in the fourth quarter, and 1.7% in the first quarter of this year.

Despite the economic recovery and improvement in domestic demand, concerns were expressed about risks stemming from the fourth wave of COVID-19. Deputy Prime Minister Hong said, "The fourth wave of COVID-19, which has continued since early July, and the resulting strengthened social distancing measures have emerged as risks to our economy," adding, "As the impact of the enhanced social distancing is expected to continue for some time, we are closely monitoring related trends and damage situations."

Deputy Prime Minister Hong emphasized, "The government will make every effort to block the fourth wave as soon as possible by providing relief and continuing the economic recovery trend through the first half of the year," and added, "We will provide robust support to vulnerable groups such as small business owners, focusing on the second supplementary budget, and will thoroughly prepare to promote domestic demand measures in consultation with health authorities."