bloomshorts South Korea’s Economic Growth Highlights
South Korea’s economy experienced a 0.5% growth in the second quarter, as reported by the Bank of Korea. This growth was significantly driven by a 4.2% increase in exports, marking the biggest gain in nearly five years.
Challenges Ahead
Despite the positive growth, the central bank has expressed concerns over potential risks posed by US tariffs. The absence of a deal with the Trump administration leaves a 25% levy on South Korean goods as a looming threat.
Expert Analysis
Experts attribute the economic rebound to improved political stability following the impeachment of President Yoon Suk Yeol. However, they caution that the recovery remains fragile, with an output gap indicating slack between demand and supply.
Trade Negotiations
Trade Minister Yeo Han-koo described the situation as ‘grave’, emphasizing efforts in ongoing negotiations. However, recent trade talks were unexpectedly cancelled due to the US Treasury Secretary’s urgent schedule.
