Weak consumption holding back recovery in Korea

Korea’s Q1 GDP data showed that while output surpassed its pre-pandemic level last quarter, private consumption remained depressed. With COVID-19 infections still running at around 650 a day, consumer spending is likely to remain subdued in the near term as people continue to practice social distancing. A full recovery is unlikely until the disease is brought fully under control and Korea reaches herd immunity, which won’t happen until November at the earliest.