Economy

South Korea's economy likely lost some steam in Q2 – Financial Post

Published

2 years ago

July 21, 2022

BENGALURU — South Korea’s economic growth probably slowed a bit in the second quarter as falling exports and soaring import costs hurt private consumption that makes up about half of the economy, a Reuters poll found.

Exports in Asia’s fourth-largest economy grew at their slowest pace in over 1-1/2 years in June as high inflation crimped overseas demand for South Korean goods, widening the trade gap and fueling concerns about a global recession.

South Korea’s export-driven economy is expected to have expanded a seasonally-adjusted 0.4% last quarter, according to the median forecast of 14 economists, a slowdown from the 0.6% rise in the preceding quarter.

On a year-on-year basis, gross domestic product (GDP) likely expanded 2.5%, according to the median of 19 economists, down from the first quarter’s 3.0% growth. The data will release on July 26.

“High oil prices, the slowdown in China’s economy, weak exports and falling facility investment are expected to have pressured the growth,” said Park Sang-hyun, economist at Hi Investment & Securities.

The economy is expected to lose momentum over the coming year as policymakers tighten fiscal spending to keep the debt-to-GDP ratio under control. South Korea’s household debt ratio is among the highest in the world.

“Higher-than-expected inflation and faster-than-expected rate hikes increase the risk of a growth slowdown in 2023. As a result of the rises in debt servicing burdens and living costs, consumer confidence has started to deteriorate,” said Ma Tieying, economist at DBS.

That, along with an economic slowdown in China, the country’s largest trade and investment partner, will weigh heavily on the economy.

Growth is forecast to average 2.5% this year, a sharp fall from 4.1% seen last year, a separate Reuters poll showed. It was then expected to further ease to 2.4% next year. (Reporting by Anant Chandak; Polling by Arsh Mogre; Editing by Ross Finley, Hari Kishan and Marguerita Choy)

Adblock test (Why?)

Source link

Economy

PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

Published

22 hours ago

October 17, 2024

Anne Joseph

OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

Source link

Economy

Statistics Canada says levels of food insecurity rose in 2022

Published

2 days ago

October 16, 2024

Anne Joseph

OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

Source link

Economy

Statistics Canada says manufacturing sales fell 1.3% to $69.4B in August

Published

2 days ago

October 16, 2024

Anne Joseph

OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.

The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.

The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.

Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.

Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.

Overall manufacturing sales in constant dollars fell 0.8 per cent in August.

This report by The Canadian Press was first published Oct. 16, 2024.

Source link