South Korea GDP Growth Confirmed at 2.2% YoY in Q2


The South Korean economy expanded 2.2 percent year-on-year in the second quarter of 2015, slowing from a 2.5 percent growth reported in January to March and matching preliminary estimates. It is the weakest growth rate since the first quarter of 2013, driven by a fall in exports.

Compared to a year earlier, final consumption expenditure grew 2.0 percent, after registering a 1.9 percent expansion in the March quarter. Private consumption rose 1.7 percent, compared to 1.5 percent increase in the first quarter. Public spending advanced 3.3 percent, following a 3.1 percent growth in the previous three months.

Gross fixed capital formation expanded 2.4 percent, the same pace as in the first quarter. Construction investment rose 1.6 percent, accelerating from a 0.6 percent growth in the preceding quarter. Facilities investment grew 5.0 percent, slowing from a 5.8 percent and intelletual property products advanced 0.8 percent (compared to 1.7 percent growth in the March quarter).

Exports declined by 0.8 percent in the three months to June, after a 0.1 percent increase in the previous period and import grew at a slower 1.4 percent (from 1.9 percent in the first quarter).

On the production side, the manufacturing sector expanded by 0.8 percent, following a 0.7 percent growth in the preceding quarter, centering around production of machinery & equipment and fabricated metal products. Electricity, gas & water supply grew 4.7 percent, accelerating from a 3.0 percent expansion in the March quarter. The services sector advanced 2.8 percent, slowing from a 3.1 percent growth. In contrast, construction sector fell by 0.1 percent, reversing from a 0.2 percent expansion in the previous three months, mainly due to a contraction in civil engineeering, which offset an expansion in residential building construction. The agriculture sector also declined by 4.7 percent, following a 6.3 percent growth in the first quarter. 

On a quarter-on-quarter basis, the economy grew by 0.3 percent, slowing from a 0.8 percent expansion in the previous quarter.

South Korea GDP Growth Confirmed at 2.2% YoY in Q2


Bank of Korea l Rida Husna l rida@tradingeconomics.com
9/3/2015 11:17:58 AM