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30 Apr 2013
Forex Flash: South Korean Industrial Production plummeted more than expected - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that South Korea's industrial production plummeted 2.6% in March, roughly three times larger of a decline than the market had expected.
They add that this follows a revised -0.9% decline in Feb (from -0.8%) and plays on fears of the consequences of a weak yen. Yesterday the director general of the central bank warned that the impact of the weak yen will have greater impact here in Q2 than in Q1 (which saw the South Korean economy expand by 0.9%). They finish by noting that the government appears to be trying to preempt some of the negative impact with fiscal stimulus announced earlier this month. Additional measures to encourage investment and support for small exporters are expected in early May.
They add that this follows a revised -0.9% decline in Feb (from -0.8%) and plays on fears of the consequences of a weak yen. Yesterday the director general of the central bank warned that the impact of the weak yen will have greater impact here in Q2 than in Q1 (which saw the South Korean economy expand by 0.9%). They finish by noting that the government appears to be trying to preempt some of the negative impact with fiscal stimulus announced earlier this month. Additional measures to encourage investment and support for small exporters are expected in early May.