South Korea's economic growth slowed in the second quarter as the country was hit hard by the outbreak of Middle East Respiratory Syndrome and the worst drought in a century, central bank data showed Thursday.
  

The economy grew 0.3 percent in the April-June period, decelerating from a 0.8 percent on-quarter expansion three months earlier, according to the preliminary data by the Bank of Korea.  

The figure is lower than a 0.4 percent estimate suggested by BOK Gov. Lee Ju-yeol earlier this month but the central bank did not provide reasons for the discrepancy.
  

From a year earlier, Asia's fourth-largest economy expanded 2.2 percent, growing at the slowest pace in more than two years. In the first quarter of 2013, the economy grew 2.1 percent on-year.
  

The BOK attributed the on-quarter slowdown to the MERS outbreak and a severe drought.
  

"The impact of MERS and the drought was a significant factor that led to low growth in the second quarter," Jeon Seung-cheol, Director General of the BOK's Economic Statistics Dept. said in a press conference, "The impact was particularly strong in the service sector."
  

MERS, which was first reported in late May, has claimed 36 lives so far, sparking a health scare and dampening consumer spending, which has emerged as an important growth engine amid slumping exports.

Consumer spending dipped 0.3 percent from three months earlier, turning around from a 0.6 percent increase in the first quarter. It also marked the first on-quarter contraction since a 0.4 percent fall in the second quarter of last year, when the deadly ferry Sewol sinking sapped consumer sentiment and pummeled private spending.  
  

Pounded by the drought, output of the agriculture, forestry and fishing sectors tumbled 11.1 percent in the secound quarter from three months yearlier, the first quarterly decline in a year.
  

Government spending growth picked up to 0.7 percent from 0.2 percent, while facility investment growth also accelerated to 0.4 percent from 0.2 percent.
  

The data comes less than a month after the BOK lowered its economic growth forecast for this year to 2.8 percent from 3.1 percent, joining in a group of public and private sector economic institutions that have slashed their growth outlooks to below 3 percent.
  

Meanwhile, the fallout from MERS and the drought was expected to linger for the time being, clouding growth prospects for the Korean economy.
  

On Wednesday, BOK Gov. Lee Ju-yeol cited a decline in incoming tourists as one of the biggest factors that have lowered second-quarter GDP and said the trend is unlikely to recover in the summer peak season. He said this may lower annual gross domestic product growth by 0.1 percentage point.

BOK's Jeon reiterated the stance. "Consumption by domestic residents is seen to be on a recovery as the MERS outbreak is cooling down. But it will take time for consumption by foreigners to recover as they tend to book travel plans a few months in advance," he said, adding the impact of the drought somewhat remains. (Yonhap)