South Korean GDP advanced 2.7 percent year-on-year in the last quarter of 2014, down from a 3.2 percent expansion in the previous period and matching preliminary estimates. It is the weakest performance since the third quarter of 2013, due to a slowdown in investment and exports.
On the expenditure side, during the October to December quarter, gross fixed capital formation slowed sharply to 0.7 percent (3.5 percent growth in Q3), due to a 1.5 percent drop in construction investment. Exports grew at a slower of 1.4 percent (2.5 percent rise in Q3) and imports shrank 0.1 percent (2.7 percent growth in Q3). Private consumption advanced 1.4 percent, slightly down from 1.5 percent in the third quarter and government spending grew 3.1 percent (3.5 percent in Q3).
On the production side, the construction sector contracted by 1.0 percent from a 1.5 percent expansion in the previous quarter. Meanwhile, growth in other sectors slowed: the agriculture sector grew by 1.3 percent (from 1.4 percent increase in Q3); the manufacturing sector (+2.4 percent from 3.3 percent growth); the electricity, gas & water supply (+3.8 percent from 3.9 percent growth) and the services sector (+3.1 percent from 3.2 percent increase).
On a quarter-on-quarter basis, the economy shrank 0.3, after a 0.8 percent growth in the previous quarter.
For full year of 2014, the country grew by 3.3 percent, following a 2.9 percent expansion in the preceding year. An increase in facility investment (+5.8 percent from a 0.8 percent contraction in 2013) was able to offset a rise in imports and a slowdown in final consumption expenditure and exports. Imports rose by 2.1 percent (from a 1.7 percent growth in the preceding year) while private expenditure grew by 1.8 percent (from a 1.9 percent growth), government expenditure (+2.8 percent from a 3.3 percent expansion), exports (+2.8 percent from a 4.3 percent) while imports increased by 2.1 percent (from a 1.7 percent growth).
3/25/2015 7:37:28 AM