South Korean Q4 GDP Growth Revised Up to 0.7%


The South Korean economy advanced 0.7 percent on the quarter in the three months to December of 2015, slowing from a downwardly revised 1.2 percent growth in the previous period but higher than a preliminary estimate of 0.6 percent expansion. Private consumption was the main driver of growth while government expenditure increased at a slower place and fixed investment contracted, final figures showed.

On the expenditure side, private consumption expanded by 1.4 percent (+1.1 percent in Q3) and government spending grew by 1 percent (+1.3 percent in Q3). Gross fixed capital investment shrank 0.9 percent (+2.2 percent in Q3), as construction investment fell by 2.4 percent (+3.3 percent in Q3), while facilities investment grew by 0.5 percent (+1.8 percent in Q3) and intellectual property products investment expanded by 0.7 percent (+0.3 percent in Q3). Exports were up by 2.1 percent (-0.3 percent in Q3) but imports rose at a faster 3.2 percent (+1.4 percent in Q3).

On the production side, manufacturing grew by 0.7 percent (+0.4 percent in Q3). Electricity, gas and water supply rose by 0.8 percent (+5.5 percent in Q3). Construction grew by 0.7 percent (+5.5 percent in Q3). Services expanded by 0.7 percent (+1.1 percent in Q3). In contrast, agriculure shrank by 2.6 percent (+4.7 percent in Q3).

Year-on-year, GDP advanced 3.1 percent following a 2.8 percent expansion in the previous period and hitting its fastest pace since the third quarter of 2014.

For the whole of 2015, South Korea's GDP rose 2.6 percent compared to a gain of 3.3 percent in 2014.

South Korean Q4 GDP Growth Revised Up to 0.7%


Bank of Korea l Joana Ferreira | joana.ferreira@tradingeconomics.com
3/24/2016 11:17:44 PM