Korea's industrial production up 0.8% in April

But economic headwinds still linger.

According to BBVA Research, after a better-than-expected Q1 GDP outturn (+0.9% q/q, s.a.) industrial production increased in April by 0.8% m/m, s.a. (consensus: 0.5%) the first monthly increase since January. (On a year-on-year basis, production rose by 1.7% in April vs. consensus:-0.5%).

Here's more:

Nevertheless, the economy continues to face headwinds from sluggish external demand, yen depreciation, and high levels of household debt. In response, the government has implemented fiscal stimulus measures, and the Bank of Korea cut interest rates earlier this month for the first time since October.

We expect the economy to grow by 2.7% in 2013, compared with the Ministry of Finance’s and BoK’s more conservative projections of 2.3% and 2.6%, respectively.

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