South Korea Annual GDP Growth Weakest Since 2009
The South Korean economy expanded 1.7 percent year-on-year in the three months to March 2019, easing from a downwardly revised 2.9 percent growth in the previous quarter (vs original 3.1 percent) and compared to the original estimate and market expectations of 1.8 percent, final data showed. It was the weakest growth rate since the third quarter of 2009, amid a slowdown in manufacturing and a sharp contraction in construction.
6/4/2019 9:19:05 AM
On the production side, manufacturing (1.3 percent vs 5.6 percent in Q4) and services (2.3 percent vs 2.7 percent) lost steam. In addition, the construction sector plummeted 7.0 after shrinking 5.2 percent in the previous quarter. In contrast, primary activity grew 1.6 percent, compared to 0.4 percent and utilities expanded by 6.8 percent after a 5.1 percent rise.
On the expenditure side, final consumption expenditure grew 2.8 percent after a 3.6 percent expansion in the last quarter of 2018, as private consumption growth slowed to 1.9 percent from 2.4 percent, and government spending growth moderated to 5.5 percent after a 7.1 percent jump. In addition, gross fixed capital formation plummeted 8.6 percent after dropping 4.2 percent in Q4, with facilities plunging 17.4 percent (vs -5.3 percent). Meantime, exports edged down 0.2 percent (vs +6.7 percent) and imports fell 5.1 percent (vs +2.4 percent).
On a quarterly basis, GDP shrank 0.4 percent on quarter, down from the advanced estimate and market expectations of a 0.3 percent contraction and compared to a downwardly revised 0.9 percent expansion in the previous period.
The base year for the GDP data was changed to 2015 from 2010.