South Korea Annual GDP Growth Edges Up in Q2


The economy of South Korea advanced 2.9 percent year-on-year in the second quarter of 2018, slightly above the 2.8 percent growth recorded for the previous quarter but below the 3.0 percent expansion expected by consensus, preliminary estimates showed.

On the production side, manufacturing gained steam, expanding 3.3 percent after a 2.7 percent growth in the previous quarter. Also, utilities rebounded sharply, advancing 4.1 percent following a 1.7 percent drop in the first quarter. Meantime, primary activity moderated (+1.5 percent vs +4.1 percent) and services expanded at a slightly softer pace of 3.1 percent (vs +3.2 percent in Q1). In contrast, construction fell into contraction (-0.8 percent vs +0.2 percent).

On the expenditure side, exports expanded at a faster pace (+5.2 percent vs +1.6 percent), while imports advanced less (+2.4 percent vs +4.2 percent), adding to overall growth. In contrast, gross fixed formation contracted 1.1 percent after expanding 3.7 percent in the previous quarter, with construction slipping 0.7 percent (vs +1.8 percent in Q1) and facilities dropping 3.9 percent (vs +7.3 percent). In addition, final consumption grew at a softer clip of 3.3 percent (vs +4.0 percent), with private spending rising 2.8 percent (vs +3.5 percent) and public spending increasing 4.8 percent (vs +5.8 percent).

On a quarterly basis, the economy expanded 0.7 percent quarter-on-quarter in the three months to June 2018 after a 1 percent growth in the previous period and matching market expectations. 

South Korea Annual GDP Growth Edges Up in Q2


Mario | mario@tradingeconomics.com
7/26/2018 9:48:28 AM