South Korea GDP Grows 2.7% YoY to Match Estimates

The South Korean economy expanded 2.7 percent year-on-year in the second quarter of 2017 according to the final estimate, consistent with the figure given in the advanced estimates and 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 construction, which expanded at a softer pace versus Q1. On the expenditure side, exports remained unchanged and imports lost steam, offsetting faster growth in both private and public consumption.

Manufacturing went up 3.2 percent, below 4.5 percent in the previous quarter but 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 (7.7 percent from 12.2 percent).

Utilities rebounded by 2.5 percent after contracting 1.1 percent in the previous three months. In was the highest expansion rate in three quarters. 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 quarters 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 the preliminary estimate and below the growth rate for the previous quarter of 1.1 percent.

South Korea GDP Grows 2.7% YoY to Match Estimates

Mario |
9/1/2017 11:11:17 AM