China and South Korea

25 Apr

Chinese newspapers have been keeping a close eye on the situation unfolding between North and South Korea. The wrangling’s that the two countries are having seems not to be damaging the South Korean economy, in fact quite the opposite with the first quarter expanding at the fastest it has in the precious two years.

The economy grew 0.9%. The growth may have been higher and the future prospects more certain had the export market in the future been less uncertain, especially if there ends up being a war with North Korea. The South Korean government has introduced a stimulus package to try and create more growth worth over US $15billion.

In the first quarter the export figures seemed to be improving up to 3.2%, although early indications from April show that there is a worsening in the customs numbers having looked at China, the US and Europe which threatens prospects in the global economy.

China has though been fostering closer ties with South Korea especially in the political fight with North Korea. The two nations have set up a hotline to discuss issues regarding strategic communications.

This new found friendship had apparently left Japan out in the cold as they have not visibly been included in communications although China, Japan and South Korea will all meet for a different reason to discuss environmental issues in early May.  

http://www.scmp.com/business/economy/article/1222736/south-korea-gdp-tops-expectations-despite-yen-nkorea

http://ajw.asahi.com/article/asia/china/AJ201304250106

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