South Korea GDP Growth Revised Up in Q1


The South Korean GDP expanded 2.8 percent year-on-year in the first quarter of 2016, faster than an earlier projection of a 2.7 percent growth, preliminary estimate showed. While government expenditure grew at a faster pace, private consumption and exports slowed while facilities investment declined.

In the March quarter, final consumption expenditure grew by 2.7 percent year-on-year after registering a 3.4 percent expansion in the December quarter 2015. Private consumption rose 2.2 percent, slowing from a 3.3 percent increase in the preceding quarter. Public spending advanced 4.5 percent, up from 3.9 percent in the previous three months. Gross fixed capital formation expanded 3.0 percent, slowing from a 5.4 percent rise in the fourth quarter last year. While construction investment rose 9.6 percent ( higher than a 7.5 percent growth in the December quarter), facilities investmemt declined by 4.5 percent (from a 3.9 percent growth in the three months to December). Intellectual property products grew by 0.9 percent, slowing from 2.1 percent in the previous period. Exports increased by 0.7 percent after posting a 2.5 percent rise in the preceding quarter. Import grew at a faster 1.9 percent, following a 6.1 percent expansion in the fourth quarter.

On the production side, construction sector expanded the most by 11.1 percent (from +7.5 percent), followed by electricity, gas & water supply (+5.2 percent from +6.7 percent), services (+2.5 percent from +2.7 percent) and manufacturing (+1.9 percent from +2.4 percent). In contrast, agriculture, forestry & fishing contracted by 2.4 percent, compared to a 5.0 percent decline in the preceding quarter.

On a quarter-on-quarter basis, the economy grew by 0.5 percent, compared to a 0.4 percent growth in an earlier estimate. It is the weakest growth since the third quarter of 2015.

South Korea GDP Growth Revised Up in Q1


Bank of Korea l Rida Husna | rida@tradingeconomics.com
6/2/2016 2:14:26 AM