South Korea GDP Growth Matches Expectations in Q4 2013

In the fourth quarter of 2013, South Korean economy advanced a seasonally adjusted 0.9 percent quarter-on-quarter, slowing from 1.1 percent in the previous two quarters, but matching market expectations. Advance estimates for the full 2013 showed the GDP expanded 2.8 percent, up from 2 percent in 2012.

On the expenditure side, private consumption expanded by 0.9 percent as expenditures on semi-durables such as clothing and on non-durables including foods increased.

Construction investment fell by 3.8 percent, with decreases in building construction and civil engineering.

Facilities investment rose by 6.4 percent, as investment in both machinery and transportation equipments expanded.

Exports grew by 2.0 percent and imports by 2.1 percent, led respectively by exports of automobiles and automotive parts, general machinery and petrochemicals, and by imports of general machinery and metal goods.

On the production side, agriculture, forestry and fishing expanded by 9.7 percent, centering around crops such as rice and vegetables.

Manufacturing rose by 1.6 percent, with increased production of automobiles, electrical and electronic equipment and metal goods.

Construction contracted by 2.6 percent, with decreases in non-residential building construction and in civil engineering.

Services grew by 0.6 percent, as gains in wholesale and retail trade, restaurants and hotels, financial intermediation and information and communication offset declines in transport and storage and business activities.

South Korea GDP Growth Matches Expectations in Q4 2013

The Bank of Korea | Joana Taborda |
1/22/2014 11:14:50 PM