[Courtesy of Iclickart]
South Korea's economy grew 2.7 percent from a year ago in the first quarter of this year due to sluggish exports and weak consumption, preliminary bank data showed Tuesday.
The Bank of Korea (BOK) said first-quarter gross domestic product (GDP) expanded 2.7 percent from a year earlier and 0.4 percent from the previous quarter.
The estimate was compared to a 0.7 percent on-quarter expansion in the previous quarter, the lowest level since the economy grew 0.4 percent on-quarter in the second quarter of last year when South Korea was hit by a Middle Eastern Respiratory Syndrome (MERS) outbreak.
South Korea's GDP grew 2.6 percent on-year last year, compared with a 3.3 percent expansion in 2004.
This month, the central bank slashed its outlook for this year's economic growth to 2.8 percent from an earlier projection of three percent. The International Monetary Fund has lowered its outlook for South Korea's economy to 2.7 percent from 3.2 percent.
The central bank has kept interest rates unchanged for a tenth consecutive month, citing uncertain factors such as low oil prices and global market volatility.
Economic officials have painted a gloomy picture saying South Korea's economy has lost steam with production and consumption declining while exports show no sign of improving.
Key economic data showed manufacturing, consumer and trade conditions weakening this year. Exports have fallen every single month since the start of last year.
Aju News Lim Chang-won = cwlim34@ajunews.com
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