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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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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