South Korea Economy Shrinks More Than Expected in First Quarter

South Korea’s economy contracted more than expected in the first quarter as exports and construction investment were downgraded from initial estimates. Inflation ticked higher in May.

Gross domestic product shrank 0.4% in the first quarter from the previous three months, the worst performance since the global financial crisis. That compares with economists’ median estimate of a 0.3% contraction, the same as the central bank’s first estimate in April.