South Korean exports fell the most in two years in March and inflation hit its lowest since 1999, weakening economic momentum and putting the central bank under pressure to cut interest rates again.
The central bank has said the South Korean economy would pick up in the March quarter after suffering its worst growth in almost six years in October to December, but a recent run of data provided little evidence of a sharp rebound.
Markets showed a muted reaction to the generally weak indicators published on Wednesday as investors have already priced in a strong chance of another interest rate cut in the coming months to support growth.
"South Korea's economy needs both consumption and exports to escape this rut, and exports are more important out of the two," said Im No-jung, chief economist at IM Investment & Securities in Seoul.
"It will be difficult for the economy to improve anytime soon and any meaningful rebound in shipments will be unlikely until the fourth quarter."
Im said he saw another rate cut as soon as May this year.
