South Korean Economy Grew at an 11% Annual Rate in Q2

Former international merchant banker and Money Morning contributing author Martin Hutchinson notes that South Korea:

• Grew at an annual rate of 11% in the second quarter

• Will report a second-consecutive double-digit advance when it reports on Monday

• Korea’s current account balance once again shows a healthy surplus, and Fitch's said that a downgrade would be unnecessary, and that Korea could expect to run a budget surplus in 2011

• The Korea Composite Stock Price Index (KOSPI) is up 65% from its low point in December 2008

• Exports have recovered, largely due to surging demand from China

• "Korea’s government spending as a percentage of GDP is one of the lowest of the world’s most-affluent developed economies. That means it will be much less of a burden than on the Korean economy than will similar outlays in the higher-spending Japan, United States and European Union."

Of course, Korea might get slammed if and when the

Chinese bubble bursts

.