Korea's economic growth climbed at slowest pace in Q2Updated: 2014-07-24 22:01:42 (KST)
Korea's economic growth took a step backward in the second quarter of the year.
The Bank of Korea says gross domestic product increased zero.six-percent during the April to June period from the previous quarter.
That's zero.one-percentage-point lower than the central bank's earlier estimate for the second quarter.
Central bank officials say growth was hampered by April's Sewol-ho disaster, which dampened domestic demand.
Private spending was down zero.three-percent.
"Due to the Seowl-ho ferry disaster, the government could not enforce the budgetary matters on the schedule. There's also poor spending sentiment among major economic participants. It worsened more than we thought it would. We will have to see how long this sentiment will continue to affect the economy."
The central bank adds, however, the Korean economy is modestly recovering with rising exports and improving investment.
Fueled by a surge in shipments of L-C-D displays and chemical goods, exports increased 1.9-percent from the previous quarter.
Construction investment inched up zero.6 percent, while investments in machinery and transportation equipment gained one.three-percent.
An analyst from Seoul-based I'm Investment and Securities says the economy will pick up in the third quarter.
"The Sewol-ho incident dragged down domestic demand at the end of April and May but it stopped affecting consumption in June. GDP growth in the third quarter is expected to recover by up to zero.9 or one-percent."
The analyst said he believes Korea's GDP in the third quarter could rise up to 4-percent compared to the same period last year.
Kim Ji-yeon, Arirang News.
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