S. Korean economy shrank 3.3% in 2nd quarter, OECD says

Posted on : 2020-08-03 17:19 KST Modified on : 2020-08-03 17:19 KST
Still the second highest growth rate among 14 advanced and emerging economies
2Q Economic growth rate of key advanced, emerging economies
2Q Economic growth rate of key advanced, emerging economies

South Korea’s economy shrank by 3.3% in the second quarter, but it still exhibited the second highest growth rate among the 14 advanced and emerging economies that have posted their second-quarter growth rates thus far.

According to data provided by the Organization for Economic Cooperation and Development (OECD) and South Korea’s Ministry of Economy and Finance (MOEF) on Aug. 2, Korea’s second-quarter growth rate was the second highest, after China, among 13 OECD member states and China, which is not in the OECD. The Chinese economy was the first to be impacted by COVID-19, but it has recovered rapidly since then, posting a growth rate of 11.5% in the second quarter.

Unlike China, Korea posted negative growth, but its economy contracted by less than the Czech Republic (-8.4%), the US (-9.5%), Germany (-10.1%), Austria (-10.7%), Canada (-12.0%), Belgium (-12.2%), Italy (-12.4%), France (-13.8%), Finland (-13.8%), Portugal (-14.1%), and Spain (-18.5%). A similar contraction was reported by emerging economies such as Mexico (-17.3%).

The OECD tracks and reports economic growth rates not only for its 36 member states but also for the six emerging economies of China, Russia, India, Indonesia, Brazil, and South Africa.

“While a simple comparison has its limitations, the raw contraction figures suggest that the shock suffered by [other] major economies is three to five times the shock suffered by the Korean economy. That allows us to conclude that the Korean economy has minimized the damage resulting from this crisis to 20-30% of the level of other countries,” Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki wrote on Facebook on Aug. 1.

By Lee Jeong-hun, staff reporter

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