South Korea's Economy Contracts in the Second Quarter

The South Korean economy unexpectedly contracted in the second quarter of 2024, due to a decline in consumer spending. The Bank of Korea has announced a 0.2% decline in gross domestic product (GDP) compared to the previous quarter, falling short of the projected 0.1% growth forecast by economists. However, the annualised GDP growth for the second quarter was 2.3%, which is slightly lower than the anticipated 2.5%. 

This contraction presents challenges for policymakers seeking to stimulate investment and consumption. In light of the unexpected slowdown, the central bank may opt to cut interest rates. Analysts believe this weakness was partly influenced by the rapid growth rate in the previous quarter, with South Korea's GDP increasing by 1.3%. The government and central bank remain optimistic, raising their 2024 GDP growth forecasts to 2% and viewing the second quarter results as a temporary setback rather than a signal of a negative trend.

https://internasional.kontan.co.id/news/ekonomi-korea-selatan-kontrak-di-kuartal-ii

Thailand's Car Production Slumps in June

The latest figures show a further decline in car production in Thailand, with a 20.11% reduction in June 2024 compared to the previous year. This follows a 16.19% decline in May. The reduction in production was largely attributable to more stringent financing regulations and an increase in consumer debt. The Federation of Thai Industries (FTI) anticipates a sustained decline in car production throughout the year, with production in the first half of 2024 reaching only 761,240 units, representing a contraction of 17.39%. Furthermore, domestic car sales declined significantly, with a 26.04% decrease in June and a 23.38% decrease in May compared to the previous year. In light of these developments, the FTI has revised its domestic sales target to 550,000 vehicles and lowered its production target for the year to 1.7 million units. However, Thailand still has an export target of 1.15 million vehicles for 2024 and is the largest automobile production centre and export base in Southeast Asia.

https://internasional.kontan.co.id/news/produksi-mobil-di-thailand-merosot-di-bulan-juni#google_vignette
 

Harley-Davidson Achieves 23% Quarterly Profit Increase

Harley-Davidson has reported a 23% increase in quarterly profit, driven by strong demand for its more expensive motorcycles during the summer riding season. The company's focus on more profitable models has contributed to improved profit margins. Harley-Davidson has also benefited from delayed demand as riders wait to switch to the newly launched 2024 Touring model. Despite facing challenging market conditions, the company managed to increase its market share in the US, with significant unit growth in the core Touring category. Sales of motorcycles and related products rose by approximately 13% to $1.35 billion in the second quarter. Net income also saw a rise, reaching $218 million or $1.63 per share, compared to $178 million or $1.22 per share in the previous year.

https://internasional.kontan.co.id/news/harley-davidson-meraih-kenaikan-laba-kuartalan-sebesar-23