South Korean GDP Grows 3% in Q4, 2.6% in 2015


The South Korean economy advanced 3 percent year-on-year in the fourth quarter of 2015 following a 2.7 percent growth in the previous period and matching market expectations, preliminary figures showed. It was the biggest expansion since the third quarter of 2014, as both private and government consumption grew at a faster pace. For the whole of 2015, South Korea's GDP rose 2.6 percent compared to a gain of 3.3 percent in 2014.

On the expenditure side, private consumption expanded by 3.2 percent (+2.1 percent in Q3) and government spending grew by 3.9 percent (+3 percent in Q3). Construction investment advanced 7.3 percent (+5.7 percent in Q3), facilities investment grew by 3.5 percent (+6.6 percent in Q3) and intellectual property products investment expanded by 1.9 percent (+1.2 percent in Q3). Meanwhile, exports of goods and services were up by 1.9 percent (+0.3 percent in Q3) while imports rose at a faster 5.5 percent (+3.2 percent in Q3).

On the production side, manufacturing grew by 2.3 percent (+1.7 percent in Q3) and electricity, gas and water supply rose by 5.8 percent (+9.5 percent in Q3). Construction expanded by 7.1 percent (+4.6 percent in Q3) and services grew by 2.7 percent (+2.6 percent in Q3). In contrast, agriculure shrank by 4.5 percent (-0.7 percent in Q3), the third consecutive quarter of contraction.

Quarter-on-quarter, GDP advanced 0.6 percent following a 1.3 percent expansion in the previous period.

For the whole of 2015, South Korea's GDP rose 2.6 percent compared to a gain of 3.3 percent in 2014, as intellectual property products investment and exports eased while private consumption and construction investment advanced at a faster pace. On the production side, manufacturing output and services sector slowed while the growth in construction accelerated.

South Korean GDP Grows 3% in Q4, 2.6% in 2015


Bank of Korea l Joana Ferreira | joana.ferreira@tradingeconomics.com
1/26/2016 12:01:25 AM