The South Korean economy advanced 0.3 percent on quarter in the three months to December, lower than a revised 0.8 percent expansion in the previous period. It is the slowest growth since the third quarter of 2012, mainly due to a decline in construction investment and a sharp slowdown in government consumption.
On the expenditure side, private consumption expanded by 0.5 percent, slowing from a 0.8 percent growth in the previous quarter. Government consumption grew 0.2 percent, sharply slowing from 2.1 percent expansion in the third quarter. Construction investment fell by 7.8 percent, following a 0.9 percent growth in the previous quarter. Intellectual property products investment also declined by 0.5 percent from a 0.3 percent contraction in the third quarter. In contrast, facilities investment grew 4.0 percent, accelerating from a 0.2 percent growth in the September quarter. Exports grew by 0.4 percent, rebounding from a 1.7 percent decline in the third quarter. Imports also advanced by 0.7 percent, turning around from a 0.7 percent decline in the previous quarter.
On the production side, the construction sector declined by 3.0 percent, following a 0.9 percent growth in the third quarter. The services sector slowed to 0.6 percent from a 1.2 percent growth in the previous wuarter. In contrast, an expansion were recorded for: the agriculture sector (+2.8 percent from 2.0 percent growth in Q3), the manufacturing (+0.0 percent from 0.9 percent decline) and the electricity, gas & water supply (+4.9 percent from 3.5 percent).
Year-on-year, the GDP advanced 2.7 percent in the last quarter of 2014, down from a 3.2 percent rise in the previous period.
3/25/2015 7:36:06 AM