Economic growth slows in Q123

The economy grew 0.1% YoY.

The gross domestic product (GDP) grew slower in Q123, increasing only by 0.1% YoY, flash estimates from the Ministry of Trade and Industry (MTI) showed. 

In Q2, the GDP grew by 2.1% YoY.

On a quarter-on-quarter basis,  GDP contracted by 0.7%, a reversal from the 0.1% expansion in the preceding quarter.

The manufacturing sector also saw a contraction in Q1, shrinking 6.0 YoY and 5.2% QoQ.

“The weak performance of the sector was due to output contractions across all the manufacturing clusters, except for the transport engineering cluster,” the MTI said.

Amongst the services-producing industries, the group of “wholesale & retail trade and transportation & storage” sectors saw a reversal in Q1. Collectively, the group contracted by 1.1% YoY. 

Meanwhile, the groups of “information & communications, finance & insurance and professional services” sectors and “accommodation & food services, real estate, administrative & support services and other services” sectors grew in Q1 by 1.9% YoY and 6.7% YoY, respectively. 

The construction sector likewise saw growth, expanding 8.5% YoY.