The provided reference focuses primarily on South Korea's economic growth, not specifically on its country risk. Therefore, I can only provide a limited perspective on potential risks inferred from economic data. I will rephrase the question to more accurately reflect the available information: "What insights into South Korea's risk profile can be derived from recent economic data?"
While a comprehensive country risk assessment requires considering political stability, social factors, and legal frameworks, the provided economic data offers some clues. Here's what can be inferred:
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Slowing Economic Growth: South Korea's Q2 2024 real GDP contracted by 0.2% quarter-on-quarter (2.3% year-on-year), falling short of expectations.
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Downward Revision of Growth Forecast: Due to weak domestic demand, the 2024 growth forecast has been revised downwards to 2.5% from a previous 2.7%.
These factors suggest a potential for increased economic risk. Slower growth can impact:
- Corporate Profitability: Companies may struggle to maintain profit margins, potentially leading to higher debt burdens and increased default risk.
- Employment: Reduced economic activity can lead to job losses, impacting consumer spending and further dampening domestic demand.
- Government Revenue: Lower growth can reduce tax revenues, potentially impacting the government's ability to meet its financial obligations.
However, it is essential to recognize that these are potential risks. A comprehensive country risk assessment would require a broader analysis of various factors beyond the scope of the provided reference.
