South Korea GDP Growth Revised Down to 2.8% YoY in 4Q

The economy of South Korea advanced 2.8 percent year-on-year in the fourth quarter of 2017, below than an initial estimate of a 3.0 percent growth, and down from the 3.8 percent expansion in the previous quarter.

By economic activity, final estimates showed manufacturing expanded at a softer 2.7 percent, slowing from a 6.4 percent growth in the third quarter of 2017 and the same as in the first estimate. Additionally, output went up at a slower pace for construction (2.7 percent compared with a 7.1 percent in Q3 and a preliminary estimate of 3.8 percent) and services rose at a softer 2.4 percent compared to 2.5 percent (vs a preliminary figure of 2.5 percent). On the other hand, agriculture advanced at a faster 1.5 percent from 0.4 percent in previous quarter (vs an initial 3.1 percent) and electricity, gas and water supply also gained steam (6.0 percent compared to an initial 5.2 percent and to 2.9 percent in Q3).

On the expenditure side, government consumption lost steam in the fourth quarter (4.1 percent compared to 4.3 percent in Q3 and an initial 3.6 percent), while private spending expanded further (3.4 percent compared to 2.6 percent in the prior period and a preliminary 1.5 percent). In addition, gross fixed capital formation rose at a slower 5.0 percent from 9.2 percent in the third quarter (vs an initial 7.1 percent), as construction and facilities increased less. Also, exports dropped 0.6 percent compared to 4.4 percent expansion (vs a preliminary 1.2 percent growth) and imports grew less (4.1 percent compared to 7.4 percent in Q3 and 3.3 percent in the preliminary estimate).

On a quarterly basis, the economy contracted 0.2 percent in the three months to December of 2017, in line with earlier estimates and slowing from a downwardly revised 1.4 percent expansion in the prior quarter. Considering 2017 as a whole, the economy expanded 3.1 percent, above a 2.9 percent growth in 2016.

South Korea GDP Growth Revised Down to 2.8% YoY in 4Q

Bank of Korea | Stefanie Moya |
3/28/2018 10:04:32 AM