SEOUL: South Korea’s industrial output rose 2.6 per cent in February from a month earlier, boosted by demand over the Lunar New Year holiday, government data showed Tuesday (Mar 31).
Production in the automobile and semiconductor sectors led the growth figure, which followed a steep decline of 3.7 per cent in January’s industrial output. Year-on-year, last month’s output showed a fall of 4.7 per cent.
South Korea’s central bank announced a surprise 25 basis point interest rate cut earlier this month, in an effort to fend off deflation and kick-start the struggling economy.
The Bank of Korea (BOK) said the move, which took the benchmark rate to a record low of 1.75 per cent, reflected slow demand and a lack of confidence among businesses and consumers. The BOK in January slashed its economic growth forecast for this year to 3.4 per cent from the previously tipped 3.9 percent.