The post South Korea sidesteps recession with 0.6% Q2 growth appeared on BitcoinEthereumNews.com.

South Korea avoided a technical recession with stronger-than-forecast Q2 2025 growth. The Bank of Korea’s (BOK) advance reading indicated that the world’s fourth-largest economy grew a seasonally adjusted 0.6% over the preceding quarter in the three months through June. That would be a strong bounce from the 0.2% decline in the year’s first three months. Economists polled by Reuters had expected the economy to grow by 0.5%. Still, it exceeded those predictions slightly, showing its continuing strength in the face of international economic headwinds. GDP growth accelerated to 0.5% yoy vs 0% in Q1 (consensus 0.4%). The quarter’s rebound helped South Korea avoid slipping into a second technical recession in a little over a year, in which there are two consecutive quarters of contraction in economic activity. Previously, the BoK had already said that weak momentum will likely be posted on the back of softer world demand and geopolitical risks; however, Q2 GDP will now provide some more colour. South Korea is experiencing weak growth but is expected to continue making modest gains despite ongoing uncertainty, supported by strong exports, steady consumption, and targeted government spending. Government and consumers drive spending growth Final consumption expenditure rose by 0.7% in the quarter. That’s a comparison to a literally -0.1% Q1 number. Private consumption increased by 0.5%, aided by a bump in purchases of motor vehicles and outlays in entertainment and sports. Analysts said this indicated that consumers felt more confident, partly because of moderate inflation and an easy labor market. Government spending grew even faster, by 1.2%. A significant portion of that run-up was driven by rising health benefit outlays. In South Korea, public spending has firmly backed social policies and eased the burden of living, especially for low-income and working-class families. The BOK said that stronger domestic demand, even if…

---

Filed under: News - @ July 24, 2025 1:26 am