S. Korea Q1 GDP slightly upgraded, CPI falls

From a year earlier, Asia's fourth-largest economy grew a revised 1.4% during the first quarter, slightly faster than a 1.3% rise estimated earlier.

SEOUL: South Korea's economy turned out to have shrunk by a seasonally adjusted 1.3% in the January-March period from the previous quarter, revised central bank data showed on Tuesday, an inch better than a 1.4% contraction estimated earlier.

Private consumption, which generates nearly half of South Korea's gross domestic product, decreased a revised 6.5% in sequential terms, a notch slower than a 6.4% fall estimated earlier, while construction investment growth was revised down to 0.5%, from 1.3% reported earlier.

From a year earlier, Asia's fourth-largest economy grew a revised 1.4% during the first quarter, slightly faster than a 1.3% rise estimated earlier.

Meanwhile South Korea's annual inflation rate in May fell below zero for the first time since September 2019, data showed on Tuesday, as the coronvirus pandemic continued to weigh on domestic demand and oil prices plunged.

The consumer price index (CPI) slid 0.3% in May from a year earlier, the Statistics Korea data showed, slightly missing a median 0.2% fall tipped in a Reuters survey. It was only the second time the index had turned negative since data releases began in 1965.

The index fell 0.2% in May on a monthly basis, matching the prediction of a 0.2% drop.

The core CPI, however, was unchanged at 0.1% rise from a year earlier. - Reuters