South Korea GDP Growth Confirmed at 1% in Q4

The South Korean economy advanced 1.0 percent quarter-on-quarter in the three months to December 2018, up from a 0.6 percent expansion in the previous three months and matching a preliminary estimate and market expectations, final data showed. It was the strongest growth rate since the first quarter of the year, mainly boosted by final consumption and gross fixed capital formation.

On the expenditure side, growth was mainly driven by  final consumption (1.5 percent vs 0.7 percent in Q3), as government spending surged 3.0 percent (vs 1.5 percent in Q3), and private consumption rose 1.0 percent (vs 0.5 percent in Q3). Also, gross fixed capital formation rebounded 1.9 percent, following a 4.6 percent contraction in the previous three-month period. Meantime, exports shrank 1.5 percent (vs +3.9 percent in Q3) and imports climbed 1.5 percent (vs -0.7 percent in Q3).

By economic activity, agricultural activity rebounded a sharp 6.1 percent, after shrinking 5.5 percent fall in the prior quarter and compared to a preliminary 5.8 percent gain, mainly due to an increase in livestock products. In addition, utilities expanded 3.6 percent (vs preliminary 4.0 percent), after contracting 0.4 percent in the third quarter, mostly due to higher sales of electricity; and construction grew by 1.0 percent (vs preliminary 1.1 percent), reversing from a 5.7 percent decline in the prior period, driven by non-residential building construction and civil engineering. Also, services rose 0.6 percent (vs preliminary 0.7 percent and vs 0.5 percent in Q3), boosted wholesale and retail trade and health & social work services. On the other hand, manufacturing output growth eased to 0.9 percent from 2.3 percent in the previous period and compared to a preliminary 0.8 percent.

On a yearly basis, the economy grew 3.1 percent in the last quarter of the year, accelerationg from a 2.0 percent growth in the prior quarter and in line with a preliminary estimate and market consensus.

Considering 2018 as a whole, the GDP expanded 2.7 percent, the slowest annual growth since 2012, easing from a 3.1 percent growth in 2017.

South Korea GDP Growth Confirmed at 1% in Q4

Bank of Korea | Mario |
3/5/2019 11:51:11 AM