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Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
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Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
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Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
South Korea's economy likely returned to growth in the second quarter, driven by improved exports and a gradual recovery in domestic demand, according to a Reuters poll of economists. After contracting 0.2% in Q1 due to weak consumption and sluggish trade, GDP is projected to have grown 0.5% from April to June, aligning with the Bank of Korea’s (BOK) May forecast.
Year-on-year, GDP likely rose 0.4% in Q2 following flat growth in the first quarter, based on estimates from 23 economists surveyed between July 15-21. ING economist Min Joo Kang noted that consumption is showing early signs of recovery, with more substantial improvement expected in Q3 as government-issued spending vouchers take effect.
To counter slowing demand and looming U.S. tariffs, the government approved a 13.8 trillion won ($9.9 billion) supplementary budget in May, followed by a 31.8 trillion won stimulus in July aimed at boosting local spending.
Exports, a key growth driver, climbed 4.3% in June after declining in May, buoyed by strong global demand for semiconductors, vessels, and pharmaceuticals. However, shipments to the U.S. and China fell for a third and second consecutive month, respectively. Construction activity continued to weigh on growth.
South Korea is currently negotiating with Washington to avoid a 25% tariff on its exports, with a deal deadline set for August 1. Industry Minister Kim Jung-kwan described talks as being in a "critical phase," though uncertainty remains.
Meanwhile, the BOK held interest rates steady this month, with many board members signaling the likelihood of a rate cut within the next quarter due to persistent economic risks. Economists have also cut their 2025 growth outlook to 0.9%, aligning with the BOK’s revised projection of 0.8%.
