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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: SKorea economy shrank 5.1 pct in Q4: central bank AFP - Friday, March 27 SEOUL (AFP) - - South Korea's economy shrank a revised 5.1 percent in the last quarter of 2008 from three months earlier, its biggest drop in a decade, the central bank said Friday. ADVERTISEMENT Although better than an earlier estimate of a 5.6 percent contraction, the fourth-quarter figure marks the steepest fall since the first quarter of 1998, when GDP fell 7.8 percent in the aftermath of the Asian financial crisis. Year-on-year, gross domestic product (GDP) contracted 3.4 percent in the October-December period in line with predictions, the Bank of Korea said. For all of 2008, Asia's fourth-largest economy grew a revised 2.2 percent, down from an earlier 2.5 percent estimate and the slowest growth since 1998. In 2007 the economy expanded 5 percent. "Economic growth slowed last year because domestic demand was lacklustre and export growth sharply eased," the central bank said in a statement. "The growth of the manufacturing and service sectors markedly slowed and the construction business shrank." This week the government unveiled a 28.9 trillion won (20.9 billion dollar) extra budget, its biggest ever, aimed mainly at creating more jobs to revive the slumping domestic economy. The new spending totals 17.7 trillion won. The remaining 11.2 trillion won will largely be used to fund previously announced stimulus projects and tax cuts. The bank's fourth-quarter figures showed exports of goods fell 12.6 percent quarter-on-quarter, sharper than a previous estimate of an 11.9 percent decline. Private spending fell 4.6 percent compared with the 4.8 percent contraction previously estimated. Facility investment tumbled 14.2 percent compared with an earlier estimate of a 16.1 percent fall. Construction investment fell 3 percent, less than an estimated 4 percent contraction. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: China's Economy China says industrial profits down 37 percentAP - Friday, March 27 NZ economy suffers biggest contraction since 1992Reuters - Friday, March 27 NZ economy contracts at steepest pace in 17 yearsAP - Friday, March 27 China's Geely suspends shares after Volvo reportsAFP - Friday, March 27 Related Articles: Business NZ economy contracts at steepest pace in 17 yearsAP - Friday, March 27 S.Korea might extend FX loan guarantees-sourceReuters - Friday, March 27 China first local govt bond sold at bottom of fcastReuters - Friday, March 27 Toshiba, Sharp say may work together in solar powerReuters - Friday, March 27 CHINA MONEY-Swap spreads set to widen with inflation in focusReuters - Friday, March 27 Enlarge Photo SKorea economy shrank 5.1 pct in Q4: central bank Related Photos Slideshow Full Photo Coverage: Business & Economy Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Red meat raises death risk, white meat lowers it Scientists see asteroid hurtle to Earth Goods reappear in Zimbabwe shops EU presidency blasts US recovery plans Papaua New Guinea forests reveal 56 new species View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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