S Korea's growth slows in Q2 on eurozone woes

South Korea's economy grew 0.4 percent in April-June from the previous quarter, the central bank said Thursday, slowing down as the eurozone debt crisis hit exports and consumption eased. The figure for gross domestic product growth compared with a 0.9 percent quarter-on-quarter increase in January-March. Year-on-year the export-dominated economy expanded 2.4 percent in the three months to June, a slowdown from 2.8 percent in the first quarter and the weakest annualised growth since a 1.0 percent rise in July-September 2009. "Growth in private consumption slowed, while exports and facilities investment swung to negative growth," the central bank said. The second-quarter performance was below its initial estimate early this month and market expectations. The bank and economists surveyed by Dow Jones Newswires had forecast a 0.5 percent quarter-on-quarter expansion, and 2.6 percent year-on-year. The central bank was expected to come under pressure for another rate cut as early as next month, after a surprise cut of 25 basis points on July 12. Its governor Kim Choong-Soo on Wednesday had stressed growing downside risks to the bank's 2012 growth forecast of 3.0 percent. That prediction had been reduced from 3.5 percent just two weeks ago.