The Bank of Korea announced on Sept. 1 that South Korea’s exports hit a 56.5-year low and its GDP growth rate dropped to negative 3.2 percent, the worst since the fourth quarter of 2008, in the second quarter of this year. The country’s GDP growth rate remained below zero for the second consecutive quarter after negative 1.3 percent in the previous quarter.

In the second quarter, South Korea’s exports dropped 16.1 percent in the wake of COVID-19. The rate of decline is the highest since the fourth quarter of 1963, when the exports plummeted 24 percent.

Under the circumstances, the contribution of net exports to GDP growth fell to negative 4.1 percentage points, which means the sluggish exports dragged down the GDP growth rate by 4.1 percent. South Korea’s imports fell 6.7 percent in the second quarter, too. Facility and construction investments fell 0.5 percent and 1.5 percent, respectively. On the other hand, private consumption rose 1.5 percent, led by disaster subsidies from the government and its individual consumption tax cut.

In the second quarter, manufacturing production and primary industry output fell 8.9 percent and 9.5 percent from the previous quarter, respectively. The former figure is the worst since the second quarter of 1963, when it dropped 10.4 percent.