South Korea Slumps Into a Recession
South Korea’s economy has fallen into a recession following its second quarter of contraction. This is likely due to the COVID-19 pandemic taking a heavy toll on the country, which is heavily reliant on exports. Gross domestic product within South Korea shrank by 3.3% in the second quarter, according to Bank of Korea data released on Thursday.
The latest reading represents South Korea’s worst performance since 1998, which was the height of the Asian financial crisis. Due to the pandemic, export demands fell drastically for cars and petrochemicals, however, investments in factories and construction fell into contraction as well. Year on year, the country’s economy contracted 2.9% in the second quarter.
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