SOUTH KOREA Q2 GDP: CURRENT MOMENTUM WON’T LAST – ANZ

Analysts at Australia and New Zealand (ANZ) banking group offer their afterthoughts on the South Korean Q2 Preliminary GDP release.

KEY QUOTES

“South Korea’s preliminary Q2 GDP showed a pick-up in economic growth, as a rebound in private consumption and government spending offset the decline in exports and private investment.”

“Looking ahead, weak export prospects, high domestic inflation and rising interest rates all point to intensifying headwinds.”

“But until there are clear signs that inflation is on a sustainable downtrend back towards the Bank of Korea’s 2% target, further rate hikes are on the cards, in our view.”