As demand for display panels and cars received an unexpected boost from lengthy shutdowns in competing Chinese factories amid the coronavirus pandemic, South Korea’s March factory output jumped by the most in 11 years. Industrial output surged by a seasonally adjusted 4.6 percent in March from a month earlier, marking the biggest expansion since a 7.3 percent jump in February 2009.
Production of electronic components including display panels soared 12.7 percent while autos output surged 45.1 percent. The boost is likely to be short-lived, however, as factories in China gradually restarted operations.
Despite the surprise output surge, the prospect of a recession is growing in the country. As self-isolation measures hit consumption and global trade slumped, the coronavirus pandemic pushed South Korea’s economy into its biggest contraction since 2008 in Q1.
Growth readings for the economy are likely to worsen in Q2 with the deepening impact from the pandemic, President Moon Jae-in said on Tuesday. Compared with an 11.3 percent rise in February, the factory output jumped 7.1 percent on a year-on-year basis.
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Published on April 29, 2020 10:37 AM (GMT+8)Last Updated on April 29, 2020 10:37 AM (GMT+8)
