Korea's economic growth rate fell to -1.4% in the first quarter of this year due to the economic impact of Corona 19.

The Bank of Korea said today (23th) in the real GDP breakdown statistics, the real GDP in the first quarter of this year decreased by 1.4% compared to the previous year.

This is the lowest growth rate in 11 years and 3 months since -3.3% growth rate in the fourth quarter of 2008 during the financial crisis.

The growth rate in the first quarter remained positive at 1.3% compared to the same period last year, but it was the lowest in 10 and a half years since 0.9% in the third quarter of 2009.

As the spread of infectious diseases in Korea began in earnest in February, private consumption and service industry production were impacted by a similar impact to the 1998 financial crisis.

Private consumption in the first quarter fell 6.4% from the previous year.

The rate of decline was the largest since the 13.8% decline in the first quarter of 1998 during the financial crisis.

As consumers refrain from going out, consumption of goods such as food, lodging, entertainment culture, etc., as well as consumption of goods such as cars and clothing, have all decreased.

The rest of the items, except consumption, were relatively good in Corona19.

Equipment investment increased by 0.2% due to increased transportation equipment, and construction investment increased by 1.3%, centering on civil construction.

Government consumption also increased 0.9%, mainly on spending on goods.

Government consumption was expected to decline in the first quarter of this year, as the growth rate in the fourth quarter of last year reached 2.5%, but it was caused by the government's early execution of a budget to respond to Corona19.

Exports decreased by 2%, giving the Corona 19 shock relatively less compared to private consumption.

Exports of automobiles, machinery, and chemicals declined, but the exports of semiconductors continued to improve.

In terms of production, the service industry fell by 2.0%, which was a shock.

This is the largest decrease since -6.2% in the first quarter of 1998 during the financial crisis.

Among the service industry, the transportation industry showed the largest drop of -12.6%, the wholesale and retail and lodging food industry -6.5%, and the culture and other service industry -6.2%, which received the impact of Corona 19.

In the manufacturing industry, transportation equipment and primary metal products fell, but the increase in the semiconductor sector offset this, and the overall decline was 1.8%.

In the first quarter, real gross income decreased 0.6% from the previous year.

As trade conditions improved, the decline was less than real GDP.

Although the Korean economy suffered the biggest shock after the financial crisis due to the early spread of Corona 19 in the first quarter, the degree of impact was significantly smaller than that of China, the country where it originated.

According to the National Bureau of Statistics, China's economic growth in the first quarter was -6.8% compared to the same period last year.

In contrast to electricity, -9.8%.

Since the spread of infectious diseases to countries around the world after March, the global economy, as well as Korea, has been more impacted, so the growth rate is likely to fall further in the second quarter.