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S.Korea Q2 growth at slowest in more than a year

Shoppers walk in the Myungdong shopping district in Seoul, South Korea.
Getty Images
Shoppers walk in the Myungdong shopping district in Seoul, South Korea.

South Korea's economy grew 0.6 percent in April-June over the previous quarter, the central bank estimated on Thursday, the slowest in more than a year due to sluggish consumption while falling slightly below market expectations.

The data follows 0.9 percent growth for the first quarter on a sequential basis and marks the weakest since a 0.6 percent gain in the first quarter of 2013. The median forecast from a Reuters survey of 27 analysts was 0.7 percent, on a seasonally adjusted basis.

The Bank of Korea estimates showed private consumption fell a seasonally adjusted 0.3 percent in the second quarter after edging up 0.2 percent in the January-March period. Capital investment rose 1.3 percent after a 1.9 percent decline.

Asia's fourth-largest economy, which relies heavily on exports, is seeing a slower-than-expected recovery in global demand, while domestic consumption has been fragile. A deadly ferry accident in April has affected services industries, especially tourism.

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Markets have priced in an interest rate cut by the central bank as early as next month on signs growth is losing momentum.

From a year earlier, the economy expanded 3.6 percent in the June quarter, compared with a median 3.6 percent forecast in a Reuters poll and 3.9 percent growth in the first quarter.

This story is developing. Please check back for further updates.

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Contact Asia Economy

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