SEOUL, South Korea (AP) -- South Korea's economic growth fell to a two-year low in the second quarter as exports and capital expenditures sagged due to a slowdown in its largest trading partner, China, and debt-crippled Europe.
The Bank of Korea said South Korea's economy expanded 2.4 percent over a year earlier in the three months ending in June, the lowest growth since the third quarter of 2009.
The second quarter economic output was 0.4 percent higher from the previous three months.
The bank said capital expenditures and exports turned to contraction from the previous quarter while growth of domestic consumption weakened.
The central bank cut its key policy rate by a quarter of a percentage point to 3.00 percent earlier this month, its first rate cut in over three years.
