The Bank of Korea (BOK) reported that China’s reopening has had a weaker-than-expected impact on South Korea’s economy. The report stated although the Chinese economy is rebounding rapidly, South Korea has not benefited much from the recovery as China’s imports remain in negative terrain. While China’s domestic consumption has improved, Chinese consumers’ demand for foreign smartphones, cars and other durable goods has continued to decline.

The report also stated that South Korea’s economy will continue its sluggish growth trend for the first half of the year, but it expects it to gradually recover from the second half as the impact of China’s reopening becomes full-fledged.