ⓒYONHAP News

The South Korean economy grew zero-point-seven percent in the second quarter from the previous quarter thanks to a recovery in private consumption with eased social distancing measures.

The Bank of Korea on Tuesday issued the quarterly estimate on the country's gross domestic product(GDP) for the April-to-June period.

The zero-point-seven percent growth represents a rise of one-tenth of a percentage point from the previous quarter.

The on-quarter growth rate posted a gain for the eighth consecutive quarter.

The central bank said its annual growth target of two-point-seven percent will be achieved if the economy logs an on-quarter growth of zero-point-three percent each in the third and fourth quarters. 

Compared to a year earlier, the second quarter figure constitutes two-point-nine percent growth. 

Private consumption increased on-quarter by three percent in the second quarter while facility investment decreased by one percent.

Exports declined three-point-one percent, the worst performance since the second quarter of 2020. Imports dropped zero-point-eight percent.

Also on Tuesday, the International Monetary Fund(IMF) cut its economic growth outlook for South Korea for this year to two-point-three percent.

The organization issued a revised outlook for some 30 major countries, in which it marked down its forecast for Asia’s fourth largest economy by zero-point-two percentage points from three months ago.

The downward revision appears to have reflected the potential impact of a slowing global economy on the nation’s export-driven economy.  

Citing such concerns as inflation, China’s slowdown, Russia’s invasion of Ukraine and COVID-19, among other factors, the IMF also lowered its global economic growth outlook this year to three-point-two percent, down by zero-point-four percentage points from April.

Growth forecasts were slashed for many other advanced countries, including the U.S., which is now expected to grow two-point-three percent this year, compared to a forecast of three-point-seven percent in April.

China, Germany and France were each subject to more moderate downward revisions and are projected to grow three-point-three percent, one-point-two percent and two-point-three percent, respectively.

As for next year’s growth, the IMF reduced its outlook for South Korea by zero-point-eight percentage points to two-point-one percent, while the estimate for the global economy dropped by zero-point-seven percentage points to two-point-nine percent.