South Korea Economy Expands 2.1% YoY in Q2

The South Korean economy advanced 2.1 percent year-on-year in the three months to June 2019, following a 1.7 percent expansion in the previous quarter and beating market expectations of 2.0 percent, preliminary data showed. Growth was mainly boosted by utilities, manufacturing and services.

On the production side, growth was driven by utilities (10.8 percent vs 6.8 percent in Q1); manufacturing (1.5 percent vs 1.3 percent); and services (2.5 percent vs 2.3 percent). In addition, construction output shrank less (-3.8 percent vs -7.0 percent). Meanwhile, agriculture, forestry and fishing output growth slowed (0.3 percent vs 1.6 percent). 

On the expenditure side, final consumption rose 3.4 percent, faster than a 2.8 percent expansion in the previous quarter, as both government expenditure (7.3 percent vs 5.5 percent) and private spending (2.0 percent vs 1.9 percent) advanced further. Gross fixed capital formation declined 3.6 percent after shrinking 8.6 percent in the first quarter of the year. Meantime, exports expanded 1.5 percent (vs -0.2 percent in Q1) and imports edged up 0.1 percent (vs -5.1 percent in Q1).

On a quarterly basis, the GDP expanded 1.1 percent, rebounding from a 0.4 percent contraction in the prior quarter and above market forecasts of 1.0 percent.

South Korea Economy Expands 2.1% YoY in Q2

Bank of Korea | Mario |
7/25/2019 8:17:43 AM