Korea rebounds from recession as exports jump despite Covid crisis
SOUTH KOREA rebounded from recession in the third quarter, enjoying the fastest export-growth in decades, reports Bloomberg News
SOUTH KOREA rebounded from recession in the third quarter, enjoying the fastest export-growth in decades, reports Bloomberg News.
Gross domestic product increased 1.9 per cent in the three months through September from the prior quarter, the Bank of Korea reported.
Exports increased the most since 1986. Economists had forecast an overall growth rate of 1.3 per cent, following two quarters of contraction. Compared with the same period last year, the economy shrank 1.3 per cent.
A late summer resurgence of the virus that led to tighter social distancing rules in South Korea has eased in recent weeks, giving relief to consumers whose spending is likely to pick up after slipping last quarter.
South Korean President Moon Jae-in has said the country should seize the chance to restart its recovery.
On the trade front, South Korean memory chips and electronics have benefited from a shift to work-and study-from-home during the Covid crisis.
A rebound in China, South Korea's biggest trading partner, is also supporting recovery, although the export-dependent economy remains vulnerable to disruptions in the US and Europe, where the epidemic is worsening.