South Korea Annual GDP Growth Slows to 1-1/2-Year Low
The South Korean economy expanded 2.3 percent year-on-year in the last three months of 2016, beating market expectations of 2.2 percent but slowing from a 2.6 percent increase in the previous period. Yet, it is the lowest growth rate in six quarters as services and construction eased, preliminary estimates showed.
1/24/2017 11:48:51 PM
Services expanded at a slower 2 percent (2.7 percent in Q3), construction eased (10.2 percent vs 10.6 percent), utilities stalled (+5.3 percent) and agriculture continued to contract (-4.8 percent vs -4.6 percent) while manufacturing rose at a faster 1.9 percent (0.8 percent).
On a quarterly basis, the economy expanded 0.4 percent, beating market expectations of a 0.3 percent increase but slowing to the lowest growth rate in six quarters.
Considering full 2016, the GDP advanced 2.7 percent, slightly higher than 2.6 percent in 2015 and matching the central bank growth target. On the expenditure side, although private (2.4 percent vs 2.2 percent in 2015) and government consumption (3.9 percent vs 3.4 percent) accelerated, and construction investment greatly enlarged (11 percent vs 3.9 percent), facilities investment contracted (-2.4 percent vs +5.3 percent). Exports accelerated (1.4 percent vs 0.8 percent) and imports slowed (3 percent vs 3.2 percent). On the production side, growth in construction (11 percent vs 3 percent) and manufacturing accelerated (1.7 percent vs 1.3 percent) while services slowed (2.5 percent vs 2.8 percent).