South Korea GDP Expands 2.3% YoY in Q2

In the second quarter of 2013, South Korea GDP increased 2.3 percent year-on-year, up from 1.5 percent growth in the previous quarter and beating market expectations. The expansion was boosted by a recovery in exports, consumption and construction.

On the production side, construction recorded the highest annual growth rate (expanded by 4.4 percent year-on-year), centering around residential building construction.

Agriculture, forestry and fishing increased 2.6 percent yoy, up from 0.3 percent growth recorded in the previous quarter. 

The manufacturing sector grew 2.0 percent yoy, up from 1.0 percent recorded in the first quarter, with increased production of smartphones, semiconductors and petrochemicals.

Services grew 2.2 percent yoy, with gains in wholesale and retail trade, restaurants and hotels, financial intermediation and health and social work. 

On the expenditure side, private consumption increased 1.7 percent year-on-year, up from 1.5 percent in the previous three months, while government consumption increased 3.9 percent yoy, from 1.3 percent in the first quarter.

Facilities investment declined for the sixth quarter in a row by 5.1 percent yoy, owing to a decrease in investment of transport equipment. In contrast, construction investment increased for the second consecutive quarter by 7.1 percent, as both buildings construction and civil engineering increased.

Exports rose 5.3 percent yoy, up from 3.4 percent in the previous quarter centering on exports of video, audio and communication equipment and imports grew by 4.6 percent owing to increases in semiconductors and electronic components.

Quarter-on-quarter, the GDP grew a seasonally-adjusted 1.1 percent, the strongest quarterly expansion since the first quarter of 2011.

South Korea GDP Expands 2.3% YoY in Q2

The Bank of Korea | Joana Taborda |
7/25/2013 11:54:53 AM