South Korea GDP Growth Matches Estimates in Q1


The South Korean economy advanced by 0.8 percent on quarter in the first quarter of 2015, accelerating from a 0.3 percent expansion in the previous period and matching preliminary estimates, as a rebound in investment and a slight increase in consumption offset a slowdown in exports.

On the expenditure side, gross fixed capital investment expanded by 4.0 percent, following a 2.9 percent contraction in the December quarter. Construction investment grew by 7.4 percent, rebounding from a 7.8 percent contraction in Q4 of 2014. Intellectual property products grew by 2.3 percent, after registering a 0.5 percent contraction in the preceding quarter. Meanwhile, facilities investment grew 0.2 percent, as compared to 4.0 percent expansion in the previous period. Final consumption expenditure advanced by 0.5 percent, following a 0.4 percent growth in the last quarter of 2014. Private consumption expanded by 0.6 percent, following a  0.5 percent growth in Q4. Government consumption grew 0.2 percent, the same pace as in the proceeding period. Exports grew by 0.1 percent, following a 0.4 percent rise in the preceding quarter. Imports rose by 0.6 percent, slowing from a 0.7 percent increase in the previous period.

On the production side, all sectors showed an expansion except the electricity, gas & water supply sector. The construction sector expanded by 2.0 percent, rebounding from a 3.0 percent contraction in the December quarter, as residential building construction increased. The services sector grew by 0.9 percent, after registering a 0.6 percent growth in the previous quarter, with all sub-sector showed growth. The manufacturing sector advanced by 0.4 percent from a 0.0 percent growth in the preceding quarter, mainly due to an increase in the production of semiconductors and petroleum products. The agriculture sector grew by 3.4 percent from 2.8 percent in Q4. In contrast, the electricity, gas & water supply declined by 3.5 percent, following a 4.9 percent expansion in the preceding quarter, mainly due to electricity.

Year-on-year, the GDP advanced 2.5 percent in the first quarter of 2015, slowing from a 2.7 percent expansion in the last quarter 2014.

South Korea GDP Growth Matches Estimates in Q1


Bank of Korea l Rida Husna l rida@tradingeconomics.com
6/4/2015 10:30:19 AM