South Korea’s Economy Grew Faster Than Estimated, Yoon Says
South Korea’s economy grew at a faster pace in the second quarter than initially estimated, Finance Minister Yoon Jeung Hyun said today.
The Bank of Korea will tomorrow report a larger expansion of gross domestic product than the July 24 estimate of 2.3 percent, Yoon said in a speech in Seoul, according to a Finance Ministry spokesman. Yonhap News cited Yoon as saying second- quarter growth was probably between 2.6 percent and 2.7 percent.
South Korea has joined China and Singapore in leading a regional rebound. Asia’s fourth-largest economy expanded at the fastest pace in almost six years in the second quarter, as shipments abroad and household spending rose, backed by interest rate cuts and fiscal stimulus, the central bank said in July.
“The brisk second-quarter result was widely expected,” said Kim Jae Eun, an economist at Hyundai Securities Co. in Seoul. “The upward trend should continue, although the pace of growth should be moderated from the fourth quarter.”
South Korea’s current account surplus in 2009 will probably exceed the previous forecast of $30 billion, Yoon said today, according to the Finance Ministry spokesman. The Bank of Korea said Aug. 28 the current account surplus was $26.15 billion in the first seven months of this year.
“Although the surplus is narrowing due to rising imports, that could be a sign that the economy may be entering a good cycle as demand is reviving,” said Kim of Hyundai Securities.