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South Korea's Economy Has Entered A Recession For The First Time In 17 Years

South Korea's Economy Has Entered A Recession For The First Time In 17 Years

South Korea's gross domestic product (GDP) in the second quarter of 2020 fell by 3.3% compared to the previous three months, according to preliminary data from the Bank of Korea.

In the first quarter of this year, the country's economy shrank by 1.3%. Thus, the South Korean economy entered a recession for the first time since 2003, the Nikkei notes. The drop in GDP was the highest since 1998.

In annual terms, GDP in April-June fell by 2.9% after rising by 1.4% three months earlier.

At the same time, analysts expected a smaller decline in indicators - by 2.3% in quarterly terms and 2% in annual terms, according to data from Trading Economics.

South Korea's exports in the past quarter fell by the highest since 1963, 16.6%, while imports fell by 7.4%.

Consumer spending rose 1.4%, driven by increased spending on durable goods.