The contraction for South Korea's economy in the second quarter was unexpected:
Advance Q2 GDP -0.2% q/q, the sharpest contraction in six quarters
- expected +0.1%, prior +1.3% (this 1.3% growth in Q1 was the fastest since Q4 2021)
- strong exports
- consumer spending fell
For the y/y, came in at +2.3%
- expected +2.5%, prior +3.3%
Attention now turns to the Bank of Korea meeting on August 22. Market expectations have been for a cut in Q4.
