South Korea GDP Growth Matches Estimates in Q4

The South Korean economy advanced 0.4 percent on quarter in the three months to December, in line with market expectations but lower than a 0.9 percent increase in the previous period. It was the slowest growth since the third quarter of 2012 as exports and investment contracted and consumption slowed.

Private consumption expanded by 0.5 percent (1.0 percent in Q3) as expenditures on both durable and nondurable goods increased.

Construction investment fell by 9.2 percent (2.5 percent in Q3), with decreases in both building construction and civil engineering.

Facilities investment grew by 5.6 percent, rebounding from a 0.5 percent drop in the previous quarter due to increases in both transport equipment and machinery investment.

Intellectual property products investment expanded by 0.1 percent (0.6 percent in Q3), centering around software investment.

Exports contracted by 0.3 percent (-2.2 percent in Q3) led downward by those of LCDs and ships. Imports also fell by 0.6 percent (-0.5 percent in Q3), mainly due to imports of crude oil and metal products.

Year-on-year, the GDP advanced 2.7 percent in the last quarter of 2014, down from a 3.2 percent rise in the previous period.

South Korea GDP Growth Matches Estimates in Q4

Bank of Korea | Joana Taborda |
1/23/2015 11:55:12 AM