Ferry disaster casts long shadow over S Korea economy

SEOUL, Aug 27 (AFP) : South Korea's ferry disaster in April is still casting a cloud over the economy, with the effect on consumer spending lasting longer than expected, the central bank said Wednesday.
More than 300 people died when the Sewol ferry sank on April 16, most of them students from the same high school.
The tragedy plunged the country into deep mourning. Growth in the second quarter was the slowest for more than a year, partly because of sluggish personal spending.
The Bank of Korea said consumer sentiment was still struggling to recover.
"The fallout from the disaster turned out to be longer-lasting than expected, even though its impact has been easing," it said of Asia's fourth largest economy.
The recovery in consumer sentiment remains feeble and companies are delaying investment due to uncertainty over the economic outlook, the bank said in a report entitled the "Golden Book".