South Korea and its related exchange traded fund (ETF) have been juggling with the current global economic conditions, just as any other country.
The South Korean economy grew faster than expected for the first quarter, due to factory production in overdrive for cell phones and semiconductors, reports William Sim on Bloomberg. Exports are driving the country’s economic expansion, and the weaker won has helped to protect them from a total slowdown. The economy expanded 0.8% from the quarter before, exceeding earlier expectations.
The iShares MSCI South Korea Index (EWY) did well, as Samsung holds 13.97% of assets, the largest holding by far. Consumer goods and industrial materials make up more than half of the ETF, weighing in at 25.95%, and 21.4%, respectively. It is down 8.5% year-to-date, but up 2.3% for the past two weeks.
For the near future, The Organization of Economic Cooperation and Development downgraded the growth forecast for South Korea 0.9% to 4.3%. A housing market contraction, mixed with inflationary pressures and a sensitive information and technology sector remain the obstacles the country may face, reports Bi Mingxin on China View.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.