The South Korean economy expanded 2.7 percent year-on-year in the second quarter of 2017, matching estimates of a 2.7 percent expansion and below 2.9 percent growth in the previous quarter. The slower GDP growth was mainly explained by manufacturing and services, which expanded at a softer pace versus Q1. On the expenditure side, exports contracted marginally and imports and construction expanded at slower rates when compared to the first quarter, offsetting faster growth in consumption.
Manufacturing went up 3.3 percent, below the 4.5 percent in the previous quarter abut still significantly outpacing the 2.3 percent annual growth for the whole 2016 and the 1.8 percent expansion for 2015. Construction also lost steam in second quarter (8.9 percent from 11.3 percent).
Utilities rebounded by 1.3 percent after contracting 1.1 percent in the previous three months. In was the highest expansion rate in three quarter. Meanwhile, services expanded at a faster pace of 1.9 percent (vs 1.7 percent in Q1), also expanding at the highest rate in the last three quarter but still below the 2.3 percent growth observed throughout 2016 and the 2.8 percent expansion for 2015.
On a quarterly basis, the economy expanded 0.6 percent, also matching estimates and below the growth rate for the previous quarter of 1.1 percent.
7/27/2017 12:07:49 PM