South Korea GDP Growth Slows in Q2

The South Korean economy advanced a seasonally adjusted 0.6 percent on quarter in the three months to June, slowing from a 0.9 percent expansion in the previous two quarters. Advance estimates showed private consumption contracted for the first time in five quarters.

On the expenditure side, private consumption contracted by 0.3 percent as expenditures on both goods and services decreased.

Construction investment grew by 0.6 percent, centering around building construction. Facilities investment expanded by 1.3 percent, with increases in both transport equipment and machinery investment. Intellectual property products investment fell by 4.2 percent, due to a decline in foreign payments related to patents.

Exports grew by 1.9 percent, with increases in those of LCD and chemical products. Imports also rose, by 0.8 percent, owing to expansions in imports of vehicles and in overseas consumption by residents.

Year-on-year, the GDP advanced 3.6 percent in the second quarter of 2014, down from a 3.9 percent expansion in the first three months of 2014.

South Korea GDP Growth Slows in Q2

The Bank of Korea | Joana Taborda |
7/24/2014 12:13:48 AM