South Korea Suffers Worst Contraction Since Financial Crisis

South Korea’s economy suffered its worst quarterly contraction since the global financial crisis as the export-driven economy felt the pinch from weakening growth in China, global trade tension and a downturn in the technology sector, the Financial Times reported. The 0.3 per cent fall in economy follows growth of 1 per cent in the previous quarter, undershooting expectations that gross domestic product would increase 0.3 per cent, according to economists polled by Reuters. The data released by the Bank of Korea came a day after the government announced a $5.87bn supplementary budget to boost growth after the country’s unemployment rate hit a nine-year high in January. The latest grim economic data will put further pressure on President Moon Jae-in, whose popularity has been dented by slowing growth and a weakening jobs market. His government has announced various stimulus measures including financial support for smaller companies and a temporary fuel tax cut to spur consumption in a bid to boost growth. Read more