Economics
South Korea's GDP Misses Forecasts, Raising Hurdle to Rate Hike
- Exports prop up growth as domestic investment declines
- Slowdown and external risks raise doubts about BOK hike
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Weaker-than-expected growth in South Korea’s economy is raising fresh questions about whether the Bank of Korea will get its long-awaited interest rate hike next month.
While stronger net exports helped sustain expansion, a second-straight quarterly decline in corporate capital investment and a sharp drop in hiring are evidence that the economy is losing steam.