South Korea growth at two-year high

south-korea-sfSpanSouth Korea’s economy grew at its fastest pace in two years in the first three months of the year, central bank figures showed but the data suggested the pick up remained fragile.

Gross domestic product grew a seasonally adjusted 0.9 percent from the previous quarter and denting expectations for an interest rate cut by the central bank.

The median forecast in the Reuters poll was for Asia’s fourth-largest economy to grow by 0.6 percent in the first quarter over the previous three-month period, when it expanded by 0.3 percent.

“It will be difficult to cut interest rates,” said Kong Dong-rak, a fixed-income analyst at Hanwha Securities. “In fact, once the government’s extra budget package starts kicking in, the central bank may end up raising its growth forecast for the year in July.”

From a year earlier, GDP rose 1.5 percent, compared with growth of 1.4 percent forecast in the Reuters poll and 1.5 percent in the fourth quarter of 2012.

Investment by companies in plant and other production equipment jumped 3.0 percent in the first quarter from the fourth quarter, but underlining the fragile nature of the pick up it was down 11.5 percent from a year earlier. Private consumption fell 0.3 percent on the quarter, reflecting heavy household debt.

 

 

Source : Reuters

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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