The Chosun Ilbo gathered data on economic growth in the first quarter in Taiwan, Hong Kong and Singapore through their Central Banks with Korea’s Institute for International Economic Policy. As a result, Korea showed a 5.3 percent growth in the first quarter, which was the lowest among the East Asian countries. While China is attempting a soft landing on its economy, it still showed a 9.7 percent growth in the quarter, and Japan showed a 5.6 percent growth, which indicates that it is coming out of its long downturn.

Countries competing with Korea -- Taiwan, Hong Kong and Singapore -- showed a 1 to 2 percentage point higher growth rate than Korea while showing 6.3, 6.8 and 7.5 percent growth, respectively. Malaysia, Thailand and the Philippines marked 6 to 7 percent growth rates as well.

Korea’s downturn alone started, in earnest, from the fourth quarter last year. Korea showed a 3.9 percent growth rate during the last fourth quarter while other East Asian countries, except Japan, which showed a 3.1 percent growth, achieved 5 to 9 percent high growth rates.

Experts analyze that such a situation is caused from the severe stagnation in domestic investment and consumption. Japanese household consumption has been on the rise for the past six months and consumption in Hong Kong and Singapore is showing 5 to 6.5 percent. Meanwhile, the consumption in Korea is keeping up with its minus growth for the past four quarters.

Corporate investments showed a high increase in Japan, Taiwan, and Singapore during the first quarter where they showed 13.5 to 16 percent increase rates. However, investment in facilities in Korea decreased 0.3 percent compared to the same quarter last year, and continued with the decrease for four months straight.

An analyst at a foreign investment bank said, “Domestic consumption in Korea is not showing hints of recovery, while neighboring countries are showing activeness in exports and domestic consumption. In Korea’s case the uncertainty that occurs from government policy is added and is becoming a factor that makes the outlook for the Korean economy unclear.”

(Park Jong-se, jspark@chosun.com )