South Korea Economy Grows 2.6% YoY in Q3
South Korean GDP growth advanced 2.6 percent year-on-year in the third quarter of 2015, up from 2.2 percent expansion in the previous quarter and slightly above market consensus, as all components in the economy grew at a faster pace.
10/23/2015 1:56:19 AM
Advance estimates from the country’s central bank showed, compared to a year earlier, final consumption expenditure expanded by 2.3 percent, after growing 2.0 percent in the June quarter. Private consumption rose 2.0 percent, following a 1.7 percent increase in the second quarter. Public spending advanced 3.2 percent, slightly slowing from a 3.3 percent growth in the previous three months.
Gross fixed capital formation grew by 5.0 percent, accelerating from a 2.4 percent increase in the second quarter. Growth were seen in all sectors: construction investment rose 5.2 percent from a 1.6 percent in the previous quarter, facilities investment (+6.8 percent from +5.0 percent) and intelletual property products (+1.3 percent from +0.8 percent).
Exports rose 0.6 percent in the three months to September, rebounding from a 0.8 percent fall in the previous period. Import also expanded by 3.5 percent, accelerating from 1.4 percent growth in the June quarter.
On the production side, the manufacturing sector rose 1.7 percent, following a 0.8 percent increase in the preceding quarter. The electricity, gas & water supply grew at a faster 9.1 percent from a 4.7 percent expansion in the previous three months. The construction sector increased by 4.3 percent, a reversal from a 0.1 percent contraction in the quarter to June. The services sector advanced 2.6 percent, slowing from a 2.8 percent growth in the second quarter. In contrast, the agriculture sector fell by 0.6 percent, following a 4.7 percent contraction in the previous three months.
On a quarter-on-quarter basis, the economy grew by 1.2 percent, picking up from a 0.3 percent expansion in the three months to June.