Autumn holiday in October hit fourth-quarter industrial output of South Korea, as the car exporters and industrial production failed to keep up the dashing pace.
The economic output of the fourth largest economic country in Asia unexpectedly shrank in the last quarter, posting its worst performance since 2008.
The Bank of Korea (BOK) said on Thursday that gross domestic product fell by a seasonally adjusted 0.2 per cent in the fourth quarter, sliding from bumper growth of 1.5 per cent in the third quarter.
Exports fell by 5.4 per cent in the fourth quarter after leaping 6.1 per cent a quarter earlier, while private consumption growth accelerated to 1.0 per cent from 0.8 per cent, the BOK said.
The economy expanded 3.0 per cent from a year earlier, slowing from 3.8 per cent growth in the September quarter, reports Reuters.
The central bank held its policy interest rate unchanged at 1.50 per cent on Jan. 18 and upgraded its 2018 growth forecast to 3.0 per cent, higher than the 2.9 per cent projected in October last year.
The BOK lowered its 2018 consumer inflation forecast to 1.7 per cent from 1.8 per cent, supporting analysts’ views that monetary policy will remain accommodative in 2018.