Posted on: Tuesday, August 21, 2001

South Korea records weak quarterly growth

Associated Press

SEOUL, South Korea — South Korea's economy grew 2.7 percent in the second quarter this year, the lowest growth since 1999, the central bank said Tuesday.

The Bank of Korea, which had expected a 3.3 percent growth, attributed the slowdown to weak exports and decrease in capital investment.

The bank expects the nation's gross domestic product — the value of all goods and services produced domestically — to expand in the fourth quarter after further contraction in the third quarter.

In June, the bank said the economy would grow 3.8 percent this year, down from an earlier forecast of 5.3 percent.

South Korea's economy grew an average 7.5 percent a year from 1990 until 1998, when it shrank 5.8 percent in the wake of the 1997-1998 Asian financial crisis.

The economy has since rebounded, growing 10.7 percent in 1999 and 8.8 percent in 2000. The growth lost steam this year amid a global economic slowdown.