SEOUL, May 24: South Korean households’ disposable income grew for an eighth consecutive quarter on an annual basis but the pace slowed to a two-year low, data showed on Friday.
In January-March, the average South Korean household saw disposable income rise by a real, or inflation-adjusted 0.3 percent over a year earlier, Statistics Korea data showed. The pace was the slowest since a 0.9 percent fall in the first quarter of 2011.
In the last quarter of 2012, disposable income increased 3.9 percent from a year earlier.
South Korea’s disposable income – total income minus spending on non-consumption purposes such as tax – has been growing on a year-on-year basis after adjustment for inflation as the local employment situation has shown resilience.
Household spending on consumption fell a real 2.4 percent in the March quarter from a year earlier, more than a 0.3 percent fall in the previous three months, as consumers remained unsure about prospects for the global and local economies.
South Korea, Asia’s fourth-largest economy, remains heavily reliant on global demand. The country is expected to grow faster this year than 2012’s pace of 2 percent but the recovery remains weak.
(AGENCIES)
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